When the homeowner cannot make the monthly payment. The lender can place a notice of default to this home. The home owner usually can make the following 3 actions:
1) Make the payment
2) Hire a realtor to sell the home
3) Do nothing.
If the home owner hire a realtor to sell the home. a lot of time it is a short sale case due to the homeowner owes more money then he can sell it for example the home owner bought this home with 100% loan and the market is not as much as it used to be.
The lender will receive less then the loan. The owner’s realtor need to negotiate the sale with the lender(s) to get the offer accepted. If the short sale is not successful.
If the short sale is not successful, then the lender can auction it or place it for sale again as a bank owner property. Any buyer can hire a RE agent to buy it. Usually at this time the price is well below the market price. Last two bank owned homes in
