Understanding the foreclosure process as a Northeast Florida real estate owner and Northeast Fl buyer.

There are several types of foreclosures, non-judicial and judicial. A non-judicial foreclosure is when real property is sold under a power of sale in a deed or mortgage that is in default. In this type of foreclosure, the lender is not able to acquire a deficiency judgment. This makes some title insurance companies wary of issuing a policy.

A judicial foreclosure is when a mortgagee and trustee on property ask for a court-supervised sale of the property. This will cover the unpaid balance of a delinquent debt. A trustee sale is advertised prior to the sale and requires an all-cash bid. This sale is typically conducted by a sheriff or lawyer. A trustee sale generally attracts investors, not new buyers. The lender holding the first loan on the property starts the bidding at the amount of the loan being foreclosed. The winning bidder receives a trustee’s deed. Foreclosures will often end in a trustee sale.

Foreclosures can also be grouped as pre-foreclosures, Foreclosure stage, and Post-Foreclosure. This describes the three ways to acquire distressed property based on where the property lies in the foreclosure process.

A great resource to acquire more information about this complex topic is Wikipedia

If you are interested in buying Northeast Florida foreclosed real estate, it is important to understand this complex subject. Using the services of a licensed Florida realtor, such as James Angelo, can help you work through this complex subject.