| Foreclosure is a legal mandate wherein a mortgagee, | | | | auction. Either way the process in itself is simple. |
| usually an individual or financial firm or creditor such as | | | | Buyers just have to come up with the money to make |
| a bank takes possession of a mortgager's property as | | | | the purchase and they immediately receive the deed |
| an act of compensation for the borrower's inability to | | | | to the house, which declares ownership of the entire |
| pay debt. This happens when a borrower secures | | | | asset. Once the transaction has been completed the |
| interest for a lender when he or she puts up an asset | | | | process for buying foreclosed homes ends. |
| such as a house for mortgage in exchange for a big | | | | This, however, does not necessarily entail that the |
| loan. At this point there are equitable rights between | | | | bank's debt has been repaid. This is because there is |
| the bank and the borrower over the property. When | | | | the possibility that the amount in which the mortgaged |
| the instance no longer assures that the loaner will be | | | | house was sold may not reach the total amount the |
| able to pay the loan, the bank moves to foreclose the | | | | loaner owed the bank. In this case, the mortgagee can |
| property and terminates the borrower's ability to | | | | actually demand that the mortgager repay the |
| redeem ownership of the assets. These assets are | | | | remainder of what he or she owes or give up more |
| then subject to the process for buying foreclosed | | | | assets so that the bank can have other people buy |
| homes so that the former owner's debt would be | | | | them through the process for buying foreclosed |
| repaid. | | | | homes. |
| These foreclosed homes are actually sold to other | | | | There are also other companies that invest in |
| people interested in buying them. The goal of the bank | | | | foreclosed property. Usually, private companies like |
| that foreclosed these assets is to get back the money | | | | these buy foreclosed assets in the hope that they |
| the borrower would have otherwise paid back by | | | | could be used for the benefit and profit of the buyer |
| selling the property. To the buyer the process for | | | | investor. They can also sell these assets at a higher |
| buying foreclosed homes varies depending on the | | | | price for profit. In any case, the process for buying |
| bank's policies. They can either directly sell these | | | | foreclosed homes generally stays the same. |
| assets to any interested buyer or put them up for | | | | |