Can A Person Who Lost Their Home To Foreclosure Buy It Back From The Next Owner?

There are myriad reasons a house or property may have gone into foreclosure.

One common situation is that the homeowner has taken out a mortgage on a property at an inflated price at the height of the real estate bubble. That mortgage, or loan, may be upwards of 100{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the purchase price.

Hector Milla Editor of the “Best Mortgage Loan Modification” website — https://www.BestMortgageLoanModification.net — pointed out;

“…Now that the real estate market has dropped precipitously, the borrower calculates that continuing to make payments on a home which has lost so much of its value just doesn’t make financial sense, despite the impact on his credit standing. The borrower, therefore, stops payment on the loan and the inevitable foreclosure auction ensues. The winning bidder, or the original lender then takes title to the property and is free to list it on the open market at a price that will make for a speedy sale…”

There is a window of time, if the property is sold at auction pursuant to a judicial foreclosure, when the homeowner actually has the right to buy back the property from the new owner, even if the new owner is resistant. This purchase price need not be the amount of the outstanding existing loan, but is determined by the winning auction bid.

As more time passes, the original homeowner may find that the current asking price is so reduced, that he actually has enough funds to purchase the property back outright without the need for another loan. However, states and municipalities vary regarding restrictions on allowing purchasers with a history of foreclosure to take title and become responsible for real estate taxes.

“…It will behoove the property owner who finds that their real estate value has dropped drastically to closely examine the pros and cons of using their funds to keep current with their mortgage payment. This may seem like a tremendous loss on the current books, but this loss will be mitigated over time by building up equity, and the reasonable rise in value of this asset class. In the meantime, credit standing will remain in tact and over the long run, this benefit may very will outweigh the apparent financial losses…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by visiting; https://www.BestMortgageLoanModification.net