Fundamentals of Foreclosure

By Patrice Miller, ABR, CRB, Real Estate Business Magazine, February/March 2007

When the economy takes a downturn, a foreclosure department can be a brokerage's busiest and most profitable department. But, it's not as simple as scooping up a foreclosed property and instantly reselling it. Here, Patrice Miller, ABR, CRB, shares the basics of foreclosure — a resource whether you are thinking of starting a foreclosure department or you just need a refresher course on foreclosure vocabulary.

The Foreclosure Process

Understanding the foreclosure process is vital to provide quality service to financially challenged clients. Every lender has a policy regarding when to begin the foreclosure process, and these policies can vary greatly. Once two to three mortgage payments are past due, or the loan falls into default, most lenders will immediately file a foreclosure action. Other mortgage companies have been known to allow several months of payment delinquency before taking legal action. (The foreclosure process also varies by county, state or local custom. For an overview of state foreclosure laws, visit www.foreclosures.com.)