Saturday, November 3, 2012

Overview of Real Estate Finance

An area that we have seen recently in our economy is the issue of foreclosures. This is the process of seizing control of the collateral for a loan and using the proceeds from its sale to satisfy a defaulted debt. There are different types of foreclosures and these include judicial foreclosures, nonjudicial foreclosures, and a strict foreclosure. In some states, they have made the foreclosure process more simple  through the process of a deed of trust or land contract.

http://www.all-foreclosure.com/help/judicial.htm
The key differences in judicial and nonjudicial foreclosures are explained here, the main being with court intervention in judicial foreclosures and non court intervention with nonjudicial.

http://www.youtube.com/watch?v=fB3LlhUSSgw
As we find out here, strict foreclosures are an instance that only a small number of states allow. In this type of foreclosure, it typically only occurs when the debt amount is greater than the value of the property.

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