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It has been several years since we've even heard of the word foreclosure, but now more than ever it is a common word amongst the Real Estate industry. Normally we are accustomed to hearing borrower, lender and trustee involving a transaction. In the foreclosure process it would be beneficial to know that a trustor is a person who creates a trust by transferring the property to a trustee. When the borrower signs the deed of trust the borrower becomes the trustor. The Lender can mean the beneficiary who is a person or an entity that is legally entitled by will, trust or insurance property to receive money or property that would be foreclosed on. And the trustee is the third party who will act upon instructions from the beneficiary, this is a neutral party. These terms can all seem overwhelming, but keep in mind that if you do your research you can often make an excellent investment in this changing market by investing in a home that will go through the foreclosure process. If you are looking to find properties to purchase one good suggestion would be to be updated with Notice of defaults. These are properties where the homeowner has missed at least three or more months on their mortgage payments and the lender begins the foreclosure process to either retain funds or try and seize the property. These Notice of defaults are recorded with the County in which the property resides in and County recordings can be seen publicly.

The homeowner has approximately three months before the home goes to a Trustee sale. The homeowner will sometime list their property and in this market most often would be called a short sale and unfortunately does not mean what it may sound like. A short sale is where the borrower owes more money to the lender than what the home is worth. For example, if a home is worth $350,000 at fare market value and the homeowner owes $400,000 they would be "short" $50,000. A buyer in this market can usually pick up a home that is a short sale for a good price, but is usually time consuming because of the process of procedures that need to take place between the borrower, Realtor and Lender. The borrower can also do a Deed in Lieu, forbearance agreement and or a note modification. If none of these options are executed with success than the home goes to a trustee sale and auctioned off at the home or the court steps. Another great opportunity to pick up a piece of property or several if you have the capital because often it is cash only in California other states may vary. If the property does not sell at this auction then the home is back into the lenders hands to sell as a bank owned property. Since a lot of these foreclosure terms have popped up because of the current market trend people do not realize that bank owned home, REO home and REPO homes are the same meaning. This means that the bank is in ownership of the home and is turning it over to a Realtor that is experienced in the community where the property resides to sell. REO is an abbreviation for Real Estate Owned home and REPO is short for Repossessed home. These agents specialized in Bank Owned homes are doing BPO homes, Broker priced opinions, to make sure that the bank is updated on the details and current pricing of the market for the particular home. Buyers be alert this again is a great opportunity to pick up a home in the foreclosure process, as you can see it is beneficial to follow each step so that you can in to get the maximum savings on a home you would like to purchase.

If The REO Realtor is not successful in selling the home the Lender will make the strategic step to place the home in a Home Auction. Like the upcoming San Diego Home Auction on January 26th, 2008 at the San Diego Convention Center presented by the Real Estate Deposition Corporation also known as www.USHomeAuction.com. You can find homes at a tremendous amount of savings like the Temecula foreclosed home listed below when attending a home Auction.

If the home is not sold at the Auction the Lender puts it back in the Realtor's hands usually at a discounted price from the listing prior to the Home Auction. Make sure you understand that through this foreclosure process there are great opportunities to buy, but it is imperative to know that through some of these processes there will be different terms and conditions.