What Happens to Homes After Foreclosure?
By Stephen Otto, Pennsylvania Bankruptcy Attorney on Oct 11, 2007 in General Bankruptcy Information
So what happens to homes that are foreclosed upon, to the point where all rights of the former home owner are extinguished? Under normal circumstances, it is the foreclosing bank or trust that ends up with good title to the home. The foreclosing entity is then able to market the home in the same fashion that a private owner would.
Recently, due to the rising foreclosure rate, “mass foreclosure auctions” have become popular. According to Sam Glover’s Caveat Emptor, such mass home auctions were popular during the savings and loan collapse in the late 1980’s.
This weekend, 325 homes will be sold by home auctioneer Real Estate Disposition Corporation at a convention in Minneapolis, Minnesota.
Are mass home auctions a good thing? If the end consumer is purchasing homes at these sales, perhaps not, since, in many cases, it was a lack of planning and foresight combined with high pressure sales tactics that set these homes up for foreclosure in the first place.
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