What happens when a foreclosure just doesn't sell?
After foreclosing on a property, a lender may be anxious to find a new buyer for the property in order to recoup its investment as well the costs associated with having to foreclose. Not all foreclosures sell, however, so the lender will look at other options to get the property off its books.
Significance
Through a foreclosure auction, the lender accepts bids on a property. If the property does not sell for the minimum amount that the lender expects, the lender will then place the property for sale on the open market with the help of a real estate agent.
Time Frame
Once a foreclosure has been placed on the open market, the lender has a time frame in mind to be able to sell it. The lender will enter into a contract with an agent to list the property for a specific period of time. If it remains unsold, the lender will transfer the property to a new agent. This process will be repeated until the property is sold.
Considerations
If a lender wants to remove a property from its books, it will often sell or transfer the property to another bank or an investor.
Tags: lender will, open market, transfer property