What Happens If a Foreclosed House Is Not Sold?
A home goes to foreclosure and is auctioned at a sheriff’s sale if a homeowner cannot pay the mortgage. When a foreclosed home is not sold, the lender takes possession of the property. The lender will attempt to sell the property using other methods.Real Estate OwnedWhen no one bids or purchases a home at a sheriff’s auction, the bank or lender buys the property at the auction and becomes the owner. The mortgage balance is wiped out and the title is cleared. These properties are called Real Estate Owned (REO), according to the website Realty Trac.EvictionAs the owner of the property, the bank handles the eviction process, according to RealEstateABC.com. The eviction process can vary from state to state.Real Estate AgentThe lender will contact a real estate broker or agent and try to sell the home using more conventional methods.ResaleMany lenders will try to sell the property as is.
