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A foreclosure auction is designed to sell foreclosed properties at whatever price someone is willing to pay. The final sale price could be considered "bargain basement" pricing in most cases, because the properties have to be purchased with cash in most states, so the buyer pool is limited. The actual auctions are regulated by state law, but the individual county where the property is located actually dictates the specifics of how the actual auction works. As a rule-of-thumb, the property ...
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Redemption rights in foreclosure actually only come after the homeowner's property is lost through a foreclosure sale or action. Once the home has been lost, some states allow the homeowner the right to "reclaim" his home for varying periods. Because of the power the banks have for foreclosing, some states decided that that homeowners should likewise have the right to reclaim their home if their personal circumstances turnaround within a given time period. The homeowner will have to ...
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A foreclosure becomes an REO at different times depending on how the bank acquired the property.An REO ("Real Estate Owned") is a home that a bank as taken back from a homeowner who stopped making his mortgage payments.In states where the homeowner has a Deed of Trust instead of a mortgage, the trustee is the one who repossesses the home and it then becomes an REO. The most common way to repossess a property is by foreclosure.In this process, the bank takes legal action in "judicial states" ...
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