Looking For Port Charlotte | Punta Gorda Bank Foreclosure Homes

Looking For Port Charlotte | Punta Gorda Bank Foreclosure Homes

Many new real estate investors want to buy foreclosure homes directly from the bank. The attraction to Port Charlotte | Punta Gorda bank-owned properties is understandable, as you borrow money from the bank to purchase a home. It is natural to assume that the bank owns the home; however, whether through a Deed of Trust or Mortgage, the title to your home is either held by a third party or pledged as security for the loan. So, in fact, the bank does not actually own the foreclosure home at all.
You borrow money from and give mortgage to the bank. The mortgage is the security instrument utilized to protect the bank from loss should you default on the home loan. Unless you bought a bank foreclosure home directly from the bank, the bank has never owned the foreclosure home at all.

Find Port Charlotte | Punta Gorda Bank Foreclosure Homes

The Foreclosing Lender’s Profits

The goal of the foreclosing lender is to gain possession of the foreclosure home. The financial goal of the lender is the recovery of the principle loan balance, accrued interest, late fees, and penalties, taxes paid on behalf of the home owner, court costs and attorneys’ fees.  In most states, the laws are written so that the mortgage lender can only attempt to recover these widely accepted standard losses.
The mortgage lender will add in every legitimate expense when foreclosing on a home. This is what is sued for: the total the mortgage lender claims is owed by the owner of the Port Charlotte | Punta Gorda foreclosure home. In most states, this is the maximum amount the mortgage lender can collect. The laws are written this way to protect homeowners from unfair practices.
The commonly held notion is that a bank (or any other lender) must sell a foreclosure home for the same amount it cost in order to gain possession of the home and, therefore, cannot make a profit. This is false. If the foreclosing lender is the successful bidder on the foreclosure home at auction, it will take possession of the foreclosure home for the very first time. When this happens, all the rules change. The lender, now the legal owner of the foreclosure home, can do anything it wants with the home, including sell the foreclosure home for any amount it desires.

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