Detroit foreclosures are feasible investment choices if you consider their affordability and the ease with which buyers can acquire them. More and more people are starting to take notice of the fact that the city does have a lot of solid and economically thriving neighborhoods ideal for raising a family or living close to work. While foreclosures are an altogether negative situation it offers an opportunity for others who can afford to make an investment in a home either for personal use, for resale or rent.

Overview on the Foreclosure Process in Detroit

There are endless opportunities to purchase Detroit foreclosures. Your choices include family houses, condominiums or apartments. What prospective buyers need to get a handle on are the various modes of foreclosures and what to expect from each of them. First off, a foreclosure is a legal proceeding to enable lenders to repossess a property after the borrower fails to pay off their debt. The process begins after the borrower fails to meet payments for three consecutive months. The lender then issues a Notice of Default. Foreclosure can also result for unpaid property taxes. Once foreclosure is made final the lender, usually a bank aims to sell the property to recover their loss.

The entire foreclosure process could take months. In the pre-foreclosure stage or the period after a notice of foreclosure is issued up to the time the foreclosure is executed, the borrower or home owner can redeem their property by paying off their debt or they can attempt to do the selling themselves to avoid foreclosure. The pre-foreclosure phase goes on for 90 days in the state of Michigan.

Only judicial foreclosures happen in Michigan where a sheriff's sale is announced through the local newspapers. The auction takes place at the steps of a county courthouse and is carried out by the county sheriff. It is open to the public and all participants must come with the entire amount on hand as these auctions are all cash sales.

When Detroit foreclosures do not get sold in auctions they become real estate owned properties. The mortgage ceases to exist and banks have the liberty of including the property in the multiple listing service or sell it through their appointed broker or agent.