Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner’s failure to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”. Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that “the lender has foreclosed its mortgage or lien.
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Buyer Transaction Costs
- One half of the base escrow fee, document preparation fees, and if the buyer is obtaining a loan, fees for the additional work involved with the new loan and email of the loan documents
- One half of the sub-escrow fee for handling the loan funds if the buyer is obtaining a loan
- New loan fees (pre-paid interest, appraisal, document preparation, funding fee, underwriting, tax service, credit report, processing, points/origination fees)
- Lenders title policy.
- Taxes & homeowners association dues (prorated)
- Recording fees for the trust deed
- Inspection fees
- Fire insurance premium
- Notary fees
- Messenger fees: delivery of contingency items and sending loan documents to the lender