Pre-Repossession Negotiation

To avoid your home being repossessed reach out to your bank/lender. Request the amount owing to be re financed. Some jurisdictions allow a redemption period during which the original homeowner can repurchase the property by paying off the outstanding debt, including fees and interest.

Pre-Repossession Sale

Some homeowners may choose to sell their homes before the repossession process is completed in what is known as a short sale. In a short sale, the lender agrees to accept less than the total amount owed on the bond.

Auction Sales

The sale of repossessed homes at auction, is a process in which homes are sold by financial institutions or government entities to recover the outstanding debt when a homeowner defaults on their bond payments.

This can only happen after a judgement is granted to sell the property on auction. The funds recovered at auction may cover the full amount owing. If not, the balance is renegotiated by the bank/lender for repayment by the purchaser.

Buyers bid on repossessed homes at auction, and the highest bidder wins. After a successful bid, the closing process begins, which includes title searches, paperwork, and transfer of ownership.

Bank Assisted Sales

If the home does not sell at auction, the lender becomes the owner and may list the property in a Bank Assisted Sale. These properties are usually sold through Real Estate Agents or brokers like conventional properties.

Financing

Buyers should secure financing in advance or have cash ready to purchase repossessed homes, as these transactions typically require a quick sale and may not be subject to traditional bond financing.

Eviction

In some cases, the former homeowner may still be in the property. The new owner will need to follow legal procedures to evict the previous owner.