Simply, foreclosure is the process by which a homeowner’s rights to a property are forfeited because of failure to pay the mortgage. If the owner cannot pay off the outstanding debt or sell it via short sale, the property then goes to a foreclosure auction. If the property does not sell at auction, it becomes the property of the lending institution.
It helps to remember that the word “homeowner” in this case is actually a misnomer – they are actually borrowers. When someone buys a home, they sign a thick packet of papers – one of which is the mortgage, or deed of trust. This document puts a lien on the purchased property, making the loan a “secured loan.”
When a lender loans you money without any collateral (credit card debt, for instance), it can take you to court for failure to pay, but it can be very hard to collect money from you. Lenders often sell this sort of debt to outside collection agencies for pennies on the dollar and write off the loss. This is considered an “unsecured loan.”
A secured loan is different because, although the lender may take a loss on the loan if you default, it will recover a larger portion of the debt by seizing and selling your property.
Buying a foreclosed home can seem like a dream. What could be better than getting a home for a fraction of the market value? Some may even say that the deals sound like they could be too good to be true. In some cases, those doubters aren’t too far off the mark. There are some hidden dangers in buying foreclosure properties that, if you’re not aware of them, could be disheartening and disappointing. If you are pursuing this route in buying your new home, be sure to look out for these hazards and hidden costs.
Today in Sumner County, 23 foreclosed homes are available for sale. Presently there are 9 under contract. The average sales price is $132,895 with an average days on the market of 49.
So you’ve found the perfect home and you are ready to make an offer. Are you pre-approved? The following are 2 very respected loan officers in the Hendersonville TN community that can assist you with that. You can contact Craig Sanders at F&M Mortgage (615)498-5626 or Carolyn Cole at Reliant Bank Mortgage (615)943-1982.
Located in Sumner County, 18 miles NE of Nashville & 20 miles from Nashville’s International Airport, Hendersonville has become one of Tennessee’s fastest growing communities. Movoto Real Estate ranked Hendersonville as #5 in their 10 best suburbs in the country. Click here for current listings in Hendersonville TN.
*Information received from Realtracs, Zillow, Amanda Kostina, Keeping Current MattersTina Redding, Realtor, EXIT Real Estate Solutions, 103 Hazel Path Ct, Suite 2, Hendersonville TN 37075Cell (615)268-5985/Office (615)826-0001/Email email@example.com/homesbytinaredding.com
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