A question about forcloseure please responds thanks :)?

Question

if a notice of default for non payment on a house is issued aug.28th, how quick til its for sale on the market.

Answer 1

It depends on the state.  Where I live it is 4 months from the notice to the sheriff's sale and then there is a 6 month redemption period.  But the house can be sold anytime before or after the notice.

Answer 2

a NOD is just the start of the process and it could take up to another 60 -90 days for the foreclosure to be fully executed. The owner can redeem at any point up to the sales on the court house steps

Answer 3

A notice of default (NOD) is the first step in the process for a bank to foreclose on the property. State laws then define the time that must occur from the date of the NOD until the bank seizes the property (in California, this is 3-1/2 months). On that date, the house goes on sale by auction at the county courthouse and will be sold to the highest bidder. Any parties interested in bidding on the property must appear at the courthouse on that day with full payment ready to bid on the property. An agent of the bank is also allowed to bid on the property.

If no one bids on the property - or the bank is the highest bidder - the bank then becomes the legal owner of the property and usually immediately puts the property up for sale (they want to clear that property off the books as soon as possible to free up their capital invested in it). The bank also negotiates with any lien holders (second mortgage holder, a county lien for non-payment of property taxes, etc.) to determine how much they will accept to get paid off. When a buyer is found and escrow closes, the bank pays off the lienholders and transfers title to the buyer, who owns the house with no liens of the property.

One thing an owner in foreclosure might be able to do is negotiate with the bank what they call cash for keys immediately after NOD. This is where the bank gives the the owner a couple or few thousand dollars to hand over the keys immediately and vacate the property, with the promise that they will not trash the place. The banks think this is worth their investment, since many people who move out after foreclosure strip and trash the property in an attempt to get back at the bank.

When I was looking at foreclosures for sale earlier this year, I saw lots of places that were stripped to bare walls (including cabinetry), all fixtures had been removed, and bathtubs and toilets had been damaged by the previous owner. And, it would cost about $40K to fix the place back up. So, the bank had to sell it for about $40K less than what it would have gone for had it been in liveable condition.