HUD homes Clarksville TN,
Foreclosed homes in Clarksville TN
Foreclosures, Short-Sale, HUD home sales, VA Foreclosures, Repo, REO, Bankruptcy Sale are all horrible for the homeowner/seller but can be great for the buyer/investor.
HUD homes in Clarksville TN | Foreclosed homes in Clarksville TN
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower, who has stopped making payments to the lender. Thereby forcing the sale of the asset used as the collateral for the loan.
Formally, a mortgage lender (mortgagee), or other lienholders, obtains a termination of a mortgage borrower (mortgagor)’s the equitable right of redemption, either by court order or by operation of law (after following a specific statutory procedure).
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Usually, a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. Therefore if the borrower defaults, the lender tries to repossess the property. Courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, it is a cloud on the title and the lender cannot be sure that they can successfully repossess the property. Therefore, through the process of foreclosure, the lender seeks to foreclose. In other words, immediately terminate the equitable right of redemption. By taking both legal and equitable title to the property in fee simple. Other lien holders can also foreclose the owner’s right of redemption for other debts, such as for overdue taxes, unpaid contractors’ bills or overdue homeowners’ association dues or assessments.
HUD homes Clarksville TN | Foreclosed homes in Clarksville TN
The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”.
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Violation of the mortgage is a default in the payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and legal costs. Therefore if the promissory note was made with a recourse clause and the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgment.
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In many states, items include calculating the amount of a deficiency judgment including the loan principal, accrued interest and attorney fees. Minus the amount the lender bid at the foreclosure sale.
In conclusion, you don’t want to default on a loan and go into Foreclosure. However, for an investor or a home buyer, foreclosed homes can be a good deal for you. If you are looking to buy a foreclosure, contact a Realtor who has experience with HUD contracts.
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For more info on buying or selling real estate, check out Homes for sale in Clarksville TN