For Buyers, serving the greater Twin Cities Area

What does Foreclosure really mean?

Foreclosure is the legal and professional proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lienholders can also foreclose the owner's right of redemption for other debts, such as for overdue taxes, unpaid contractors' bills or overdue HOA dues or assessments.

If your interested in buying a foreclosed property, you may want to consider just what to expect from the process. While first time buyers are eligable for great Interest Rates & Tax Credit, why are so many of these offers being rejected by banks, even at full price. What are the in's and out's of buying a foreclosed property for the right price, but also how do you get the bank to accept your offer...more