hi everyone,
I understand the foreclosure process as well as the redemption period, my question is, is there any more motivation for the homeowner to sell there home before it goes to the trustees sale? I mean, if they have 75 days to redeem after the sale is there any real reason to accept a lowball offer before the sale? I hope this question makes sense.
trwilliams
trwilliams,
That is a good question. I hope someone here might have some insight on that.
John
Once a foreclosure shows up on their credit history, it will be extremely difficult for several years for them to be able to purchase another piece of real estate. Unlike other credit problems, this one stays with them forever because it is a civil action that will always show up on a judgement report.
Even if they redeem the property (which seldom happen because they can’t get financing) the foreclosure will show up every time a judgement report is ordered.
Also, if there is a deficiency judgement because the property sold for less than what is owed, they will face wage garnishment until it is satisfied. In Maryland, there is no cap on garnishment, so the lender can attach their entire net paycheck until the deficiency is paid.
There are a few other factors, but these are the main ones.