Title: What Is a Foreclosure? 4 Things Homeowners Need to Know | realtor.com®
Headings: What Is a Foreclosure? 4 Things Homeowners Need to Know
What Is a Foreclosure? 4 Things Homeowners Need to Know
1. What is pre-foreclosure?
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2. What is foreclosure?
3. What happens at auction?
4. What happens after foreclosure?

Content: Your home will be sold at a public auction to the highest bidder, who must pay the full amount for the purchase immediately. This buyer will receive a trustee's deed once the sale is complete, at which point he or she becomes the official owner. But foreclosure auctions don’t always go as planned. Unlike a traditional home sale—where the seller uses comparable properties (“ comps ”) to determine the sales price —mortgage lenders use a different formula to determine the listing price of a foreclosure. The starting bid usually includes the balance of the unpaid mortgage loan, interest owed, attorney's fees, and costs generated by the foreclosure process—and together, those costs can sometimes push the asking price above market value. If no one buys the home, the lender becomes the owner and the home is considered a bank-owned or REO (real estate owned) property. Typically, the lender then works with a real estate broker to put the property on the market. Generally, REO properties are sold "as is," which means the lender is selling the home in its current condition and will make no repairs or improvements (or give the buyer any credits to fund fix-its). 4. What happens after foreclosure?