What is foreclsoure? What does it mean to buy a “foreclosure”?-Utah

Foreclosure Utah

Foreclosure is the legal process by which a lender can terminate an owner’s rights to a property and sell it in order to satisfy a debt that is in default. Foreclosure is a process. The word foreclosure is used interchangeably by many people to describe many different types of real estate sales. Some are  more correct than others.

1. Short Sale- A short sale may be considered a “pre-foreclosure” sale if a notice of default has been filed and the foreclosure process is in the works at the time of the sale. This however is does not mean you are buying a foreclosure, but a short sale.

2. Distressed sale- Many other real estate sales take place when the foreclosure process is in the works. These may be considered “pre-foreclosure” deals but still should not be considered “foreclosure deals”.

3. Trustee Sale- This is the very act of foreclosure. If you buy a property at a trustee sale auction you are technically buying a trustee sale. This however is probably the most accurate definition of purchasing a “foreclosure” IMO. Most people however when they refer to buying a foreclosure are usually NOT referring to a trustee sale.

4. Bank Owned, REO, Corp Owned or Investor Owned-After the trustee sale takes place and the property has either sold to a 3rd party or the foreclosing lender, the trust deed has been foreclosed, a trustees deed has been issued, (the legal evidence of foreclosure) and the foreclosure is complete. This property IMO is now most commonly referred to as a “foreclosed home”. Or when some one says they bought a foreclosure this is what they are referring to. This is probably more accurately described as purchasing a bank owned home or “Corp owned” property. Many times after the foreclosure the company selling the property is not technically a “bank” but a subsidiary or affiliate of the bank or private party. Or even a separate entity controlled by an investor or bank,  IMO purchasing this type of sale could be considered “buying a foreclosure” up until the time property is purchased by an owner occupant.

If you are interested in purchasing a foreclosed home please contact me for a free list of foreclosures. If you have a home that is anywhere in the foreclosure process and you live in Utah please  contact me to discuss your options.

*this is not legal advise.