Condominiums Foreclosure Booming Market for Financial InstitutionsPosted in Foreclosures, by Jane Scott
Where condominiums are foreclosed on by either a bank or a mortgage lender due to lack of payment by the buyer, there is no choice but to do foreclosure condos to get some money back. This foreclosure may take place at any time with or without notices to either the builder or lender as specified in their mortgage or building contract. This usually results in a public sale of the property without notice to either the buyer of the builder. In other situations, the bank or lender will allow someone else take up the payments, which gives them the right to move into the condominium. The banks and lenders have the final say in this matter.
In the case of foreclosure for the lender or builder that is in default, the severity of the default will determine the bank or lenders attitude towards the foreclosure. Most will work with you to keep this from happening, but when they can’t the only solution is foreclosure. Foreclosure condos are a booming market for the financial institutions that do the lending process. In the case of a condominium, this can indeed be very pricey especially in terms of a broken contract, fees and other items.
A condo is a very pricey unit and to have a bank foreclosed on that will just land you in a lot of hot water both financially and credit wise. Condominiums foreclosures can be rare, but they still happen. Foreclosure stays on one’s credit record for at least a term of ten years, which is sure to foul up any credit that you may have built and in fact will drop your credit rating almost overnight. This can provide a lot of trouble if you try to buy anything on time or on credit. This can be avoided by letting your lender know at the first sign of trouble.
There are legal notices in the paper every day about foreclosures, especially foreclosure condos. Foreclosure condos are also announced on TV and radio for a public sale. This gives the pubic a chance to bid on the property. The winning bid will do one of two things, either pay off the mortgage or take up payments on the condominiums that are featured in the pubic sale. This can be devastating if you are in this position of having a condo repossessed or foreclosed upon.
The need for money may lead a homeowner to turn to drastic measures. Condominiums foreclosing often is a common fact of life these days, especially with people’s finances in a complete disarray due to layoffs, job losses or loss of income. This is more common than most would have you believe. In big cities, bank condominium foreclosures are at an all time high. It is evenly split between builders going out of business and buyers that bite off more than they can chew financially. A black mark on your credit is no laughing matter. This can take years to undo and your situation now depends on your credit rating.