Let’s look at one way a homeowner could lose their property, foreclosure. This is a term most of us are familiar with. A home can go into foreclosure if the owner fails to pay debts that are associated with the property. But what are some of the reasons this can happen?
Getting behind on mortgage payments is probably one of the biggest reasons a property will be foreclosed on. If this is the case, the bank will usually seize the property.
Failure to pay the contractor’s bills is also another reason that your home could go into foreclosure.
If a property owner fails to pay property tax, this can be another reason for foreclosure. If these taxes continue unpaid, the home will likely be taken by the local government.
A large portion of people throughout the United States live in homeowner’s association (HOA) neighborhoods. Those that live in these types of properties must pay HOA fees. If these fees are not paid, this could result in the home being foreclosed on. Its important to know also that some of these Home Owners Associations have a lot of authority in certain States which means that you may not receive any government protection or have any rights if you fall into arrears with your fees.
Before you start the home buying process, make sure you do research on the laws and regulations that pertain to your location, as different States have different laws. Also, be sure you are completely aware of your rights as a property buyer and the rights of the lenders.