The banks provide two kinds of loans secured and unsecured loans. Your credit cards and personal loans can be categorized under the unsecured loans as the bank is not keeping anything is not asking for anything at all, it can be better said that if you take a personal loan and buy a home theater the bank would have no monetary interest in it. Where as, a secured loan is when you give something as a security, if you take an example of a house, the bank would give you a loan (mortgage) to buy the property but would keep the property papers with them, the bank would have a monetary interest in the property and is allowed to foreclose the property is the borrower is unable to pay the monthly installments in time. When the bank overtakes the properties and lists them for a sale in market it is called as Bank foreclosures for sale.
The bank usually sends a letter to the borrower asking him about his intentions towards the property and asking him to get in touch with the bank. The bank would wait for some time depending on the state the property is in and would then ask him to ether pay the amount overdue or give away the property. The bank then involves the lawyers for the same and ultimately sends a final notice of foreclosure. The bank would then list the property under the bank foreclosures for sale informing people about the property that is to be foreclosed. This is a simple way of informing people more about the property, the property is then auctioned o the pre decided date and goes at a discount of 10- 40% of the market value. The buyer of the property gains as he got the discount and the bank gets his money bank which can be again put into circulation to make more out of it. The banks intentions are to get the money, the bank tries to sell this property as soon as possible as it is hard for the bank to maintain the property for long.
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HUD Fair Housing Equal Opportunity
