Foreclosure : This is the auction process by which the lender attempts to do 2 things: obtain clear title to the property by wiping out liens and obligations recorded after the instrument, and occasionally accepting a successful bid that pays all or part of what they are owed. … Often the lender will instruct the trustee to make a bid on itâ€™s behalf that is somewhere very near the amount they are owed, in hopes that someone will either bid higher and they will be made whole, or that once they have clear title, they can then resell and hopefully mitigate their loss.
Let’s see some localized context, courtesy a report titled ” Cumulative Foreclosure Actions In Virginia (April 2008)” sent to me by a local lender ( PDF ) – Albemarle County is #68 with .03% Augusta County is #76 with .02% Charlottesville is #78 with .02% Fluvanna County is #98 with .01% Greene County is #65 with .03% Nelson County is 103 with 0% Waynesboro City is #87 with .01% For context, look at Spotsylvania 1.69% and 1.9% Stafford, which equals 727 and 828 housing units respectively under foreclosure. Loudoun County has over 2,000 foreclosures equalling 2.14% of their housing stock.
From today’s HooK story on foreclosures in Charlottesville : Prang works out of his house for Carteret Mortgage; he says his mortgage consulting is geared toward the Christian community and home schoolers, which is what his wife does with their three children. … He suggests that people unable to keep up with their payments try something called a “deed in lieu of foreclosure,” in which, with approval, they simply give the house back to the bank.