Whenever a loan on property has gone beyond its due date, the lending party becomes legally allowed to reclaim the property from the borrower which has failed to meet their end of the lending contract. When property is acquired in such a way, these are referred to as foreclosures, and they apply to physical properties such as houses, cars, boats, and other physical possessions that are of notable value.
Foreclosures are initiated in different ways. When the lender is actually in a bank entity, the bank will first inform their client about the due date coming so that the borrower will be aware that certain moves need to be made in order to retain the property being pertained to. When ends are unable to meet, the borrower has the option of selling the property so that they might be able to cash out the equity.
Other times though, when the lender is quite brash about this sort of business, they may end up simply taking the property. This mode of acquiring property is what we refer to as a deed in lieu of foreclosure. Once the property has been reclaimed, the lender becomes given the right to sell the said property at whatever price is most effective, but usually they end up selling the property for a lower price in order to get back whatever it was that they lent to the borrower in the first place. These deed in lieu foreclosure lenders are obviously not a very good option for people who wish to borrow for the purpose of obtaining real estate, since there is no telling whether or not they can trust the lender to offer them time allowance in order to meet up to their end of the deal. In these tough times, not very many people care about how hard times are proving to be, especially when everyone is going through hard times anyway.
These foreclosures are seen as great investment opportunities, however these foreclosures also mean that people who have tried hard to obtain property of their own have actually failed in the process and have been bumped off the grid to find other residential options.
Apparently, in the case of Miami foreclosures, August has proven to have the highest number of foreclosures since the real estate crisis began three years ago. Almost hundreds of thousands of homes were foreclosed by banks in August alone, and added to that is a 3% increase as opposed to those of the month of July.
Thousands of foreclosure notices are still being sent out to people who reside in different neighborhoods in Miami such as Fort Lauderdale, where there has also been a noted percentage increase since July of this year. Despite this, things are looking better than the statistics collected from last year, which means that things are still somewhat improving in the on-going real estate issues that we are faced with.