In casual talk the term foreclosure means all the measures taken till the point of repossession of the houses by the banks. There are an increasing number of repossessed homes for sale. In the first stage the borrower falters to pay monthly dues –defaults. When it continues up to 90 days (the number varying in states) it is said that the mortgage has become delinquent. At this point the lenders send a foreclosure notice. The lender has to present the facts before the court, proving that it has the right to sell the house to realize dues. If the court is satisfied then a Sheriff’s auction is staged. If the house is sold then the lender is free to take what is due, tax authorities too stake their claim and if after that anything is left over it is returned to the borrower. In the event of there being no satisfactory buyer at the court auction then the lender takes over the property – this is known as repossession by the bank. The bank now sells these real estate owned or repo homes.

The recent tendency is that the number of repossessed homes for sale is rising because court auctions are failing to draw buyers. For potential buyers repossessed homes for sale offer better options than court auctions. In foreclosed auctions the buyer cannot go inside the house and check to financially gauge the damage done. Whereas in the case of repossessed homes for sale the potential buyer can go inside pull out cupboards and test windows. Another advantage of repossessed homes for sale is that these are completely lien free with even all taxes being current. Usually the lenders give heavy discounts for repossessed homes for sale. The banks are overburdened with their repossessed homes for sale and are eager to get it off their shoulders. Thus for the lucky buyer investing now in repossessed homes for sale can be a windfall. To see repossessed homes for sale realtors are organizing bus tours with free lunch to attract buyers. Initially there was a question buying tickets to view these repossessed homes for sale but now that has been dispensed with. The response is sharp. Foreclosures by state can also be viewed free online in some regions. But seeing it on the computer and walking into vacant repossessed homes for sale is quite another experience. The idea is catching on. Abroad the bus are legal experts, realtors and appraisers to explain matters there and then to the interested. Sometimes on the spot deals are completed.