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Stop Power of Sale in Aurora
What are Power of Sale loans?Power of Sale loans are like other types of loans but are structured differently in the sense that they are meant for the purchase of a house that has been listed on the real estate MLS as a Power of Sale. But what does it mean when a house is listed as a Power of Sale? When a house and its property are listed on the MLS as a Power of Sale, there are a few things going on with that specific home that separates it from regular home listings. A Power of Sale comes about when the mortgage holder (usually a major bank) has repossessed a house and its property because there was a breach in the mortgage loan agreement/terms of the contract with the home owners and therefore the bank took legal possession of the dwelling and any property. By law, the bank must list the house & property as a Power of Sale, which means the house & property must be priced at fair market value, and the scurry begins with home buyers to purchase this house as quick as possible.
How do stop power of sale loans work?Power of Sale loans are processed by lenders quicker than other types of loans, they are designed to use the house & property as the main source of collateral against the loan. Yes, home buyers must still run through the motions of qualifying for Power of Sale loans, but the lenders know time is of the essence as there could be multiple offers on a Power of Sale dwelling. After being approved for Power of Sale loans, the seller (the banking institution) will approve a buyer for the Power of Sale house and provide that individual with a foreclosure notice to seal the deal (a Power of Sale Foreclosure).
How can loans prevent the bank from liquidating your home via power of sale?The positive and gainful impact that Power of Sale loans provides is the ability to quickly purchase a dwelling that is listed at fair market value, without the usual back and forth negotiations on the purchase price. House flippers are very attracted to houses that are listed on the MLS as Power of Sale because the houses are sold in ‘as in’ condition and with some trendy renovations, they can re-sell the house for a higher price point. Individuals that are seeking a better deal on a house can also take advantage of a Power of Sale house, through using Power of Sale loans!
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