Posted on: 10th Apr, 2004 04:59 am
Public auction is a gathering at a pre-announced location where the lender sells off the property on account of the borrower's default in mortgage payments.
Example: Candy takes a mortgage loan of $100, 000 from Joseph and keeps his property as the collateral for the loan. Due to specific reasons, he was not able to pay off the loan. So, Joseph sells off the property at a public auction, and takes away the sale proceeds in order to satisfy the loan he has offered.
Before a public auction is held, the lender has to file a foreclosure lawsuit or notice of default in the public records. The borrower is given a time period of 90 days within which he can pay off the loan in order to avoid foreclosure. If he fails to satisfy the mortgage within this period, the court sells off the property to the highest bidder in a public auction. Depending upon state regulations, the county sheriff or a trustee takes charge of the auction.
If the property does not sell off at the auction, the home becomes Real Estate Owned by the bank. The banks then sell of the property in the open market, either through a real estate agent or through a third-party marketing company.
Example: Candy takes a mortgage loan of $100, 000 from Joseph and keeps his property as the collateral for the loan. Due to specific reasons, he was not able to pay off the loan. So, Joseph sells off the property at a public auction, and takes away the sale proceeds in order to satisfy the loan he has offered.
Before a public auction is held, the lender has to file a foreclosure lawsuit or notice of default in the public records. The borrower is given a time period of 90 days within which he can pay off the loan in order to avoid foreclosure. If he fails to satisfy the mortgage within this period, the court sells off the property to the highest bidder in a public auction. Depending upon state regulations, the county sheriff or a trustee takes charge of the auction.
If the property does not sell off at the auction, the home becomes Real Estate Owned by the bank. The banks then sell of the property in the open market, either through a real estate agent or through a third-party marketing company.
The first step in any Minnesota first time home buyer program should be to determine a monthly budget, income minus expenses and savings, to determine how much of a mortgage payment you want to take on. In addition to your mortgage payment, which includes principle and interest on your loan, you will also have a monthly tax and home owners insurance payment. Most Minnesota borrowers roll their taxes and insurance into their loan payment, (principle, interest, taxes, and insurance or "PITI"). If you are purchasing a Minneapolis Condominium or townhouse, you will have a monthly "association" payment and usually that takes care of your home owners insurance. Either way, an important first step is to determine how much of your total monthly budget you will spend on your housing.
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williamgeorge
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williamgeorge
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Hi williamgeorge!
Welcome to Forums!
Thanks for sharing the inputs.
Sussane
Welcome to Forums!
Thanks for sharing the inputs.
Sussane