A Look at the Final Repo Homes Process

Before the foreclosure process would be completed, there will be several stages that distressed homeowners would go through which would give them a chance to save their properties from turning into repo homes.

However, if efforts to save the properties from turning into repo homes come to naught, the final procedure would be the Public Trustee’s issuance of a deed of ownership to new owners of repo homes.

The deed which proves property ownership will be received by the individual who purchased repo homes, unless a junior lienor redeems the properties. Under the foreclosure process, a redeemer has the right to take repo homes away from the individual who acquired the properties.

Once the redemption period has expired, it is then that the Public Trustee would issue a signed deed of ownership and put it on public record.

The deed written and issued by Public Trustees has several features, including:

• It erases junior liens of repo homes
• The putting of the deed on public record indicates compliance of all statutory requirements of foreclosures.
• Everything that is written on the ownership deed is assumed to be all truths.

In a nutshell, the deed written and released by the Public Trustee could not be contested because it carries the assumption of truthfulness.

When the deed is put on public record, potential homebuyers can rest assured that the foreclosure procedure on the property was done correctly. Added to that, junior lienors do not have the right to make a claim on foreclosed properties.

The properties will be again put on the market in an attempt to sell them to new buyers. However, new ownership does not guarantee that a property that had completed the foreclosure process would not fall again into default.

U.S. foreclosure activity for the month of February this year rose 6 percent over the previous month and 30 percent over February of last year.

Data released by RealtyTrac showed that one out of 440 homeowners received foreclosure filings during the month that President Barak Obama announced his foreclosure prevention plan.

Nevada, Arizona and California are still leading the states with high foreclosure rates. One out of 70 houses in Nevada was in some kind of foreclosure process.

On the other hand, one in every 147 homeowners in Arizona received foreclosure filings while one out of 165 houses in California was served foreclosure notice.