A foreclosure guarantee is a type of report (e.g. trustees sale guarantee, judicial foreclosure guarantee and litigation guarantee) that is used mainly for foreclosing an encumbrance (or a lien) in a certain property. The title searcher will perform a full coverage search to the property in default and a search for the addresses of the lien holders to the property in default. The addresses will be used for sending copies of the notice of foreclosure letters (such as notice of trustees sale, etc.) to the lien holders to the property in default.
Foreclosed homes are properties that are real estate owned. Most of the time the lender has recalled the loan due to non-payment allowing them title to the property. When a homeowner falls behind on their mortgage payments, the lender can initiate foreclosure proceedings to repossess the property. This process allows the lender to auction or sell the property in order to recover the remaining balance of the mortgage loan.
Foreclosed homes are often sold at public auctions or through real estate agents as bank-owned or real estate owned (REO) properties. These properties are usually sold at a discount compared to their market value, as lenders typically want to recoup their losses quickly. Buyers of foreclosed homes may find them to be a good investment opportunity, but it’s important to conduct thorough research and inspections before purchasing a foreclosed property, as they may come with certain risks and challenges.
