Foreclosure

property foreclosure Foreclosure

About Foreclosure

Did you know there has never been a better time to find a foreclosure property that’s right for you? The selection of foreclosures has never been greater in the Valley of the Sun, than it is today. My clients and I are finding impressive foreclosure properties and remarkably low prices due to this housing crisis we’re in.

Here are some helpful tips for you while looking for a Bank Owned/Foreclosure real estate property in State:
* Pre-foreclosures
* Auctions
* Bank-Owned Homes
* Buying from Government Agencies
* General Tips
* Other Resources
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Pre-foreclosure

In some instances you may be able to find a home in pre-foreclosure. In this case, you offer to purchase a house that is close to going into default and buy the house directly from the homeowner. The homeowner would sign the deed to the house over to you, and you would assume the mortgage and make any back payments due to the lender.

Once the notice of default is filed with the county where the property is located, you can contact the homeowner via phone, mail, or in person.

4 benefits of this option include:

  1. You can conduct a title search before purchasing the property.
  2. View the inside of the home.
  3. Schedule a home inspection.
  4. You can purchase the home at a discount (usually around 10 to 20 percent below the home’s value)

This option also helps home owner to avoid foreclosure, save face and rescue some of the equity in the home. Remember, buying a home in pre-foreclosure is a time-sensitive opportunity so you will need to know what you are doing and move fast.

Auctions

Once the home goes into foreclosure an auction date will be set. In which case, the seller of the home is not the owner of the home, but rather the financial institution or agency that has not been paid by the homeowner. Auctions attract experienced real estate investors who make the purchase, repairs, and resale of the homes. Often these investors will buy lots or bundles of foreclosed homes, contributing to the quickly disappearing inventory we see in the market today.

You can locate auctions online which list scheduled auctions The best way to get the dates, times, and properties listed is to go through your county tax department.

Here are 5 things you’ll need to know:

  1. Know the maximum amount you are willing to bid and stick to that budget.
  2. You will not be able to complete a home inspection or title search on the property, unless you completed it during the pre-foreclosure stage.
  3. If you make the winning bid, you will have to pay for the property immediately with cash or a cashier’s check.
  4. All sales are final.
  5. There is the possibility that you will have to evict tenants/ residents. If you are unfamiliar with the eviction process, you should hire a lawyer to handle it for you.
    You are responsible for any tax liabilities or second mortgages against the property.Bank-Owned HomesYou may end up buying a foreclosed home directly from the financial institution that holds the original loan for the house. There are various search engines available online that can direct you to bank-owned real estate or you can contact banks directly and ask about their Real-Estate-Owned (REO) programs.

 

4  good reasons for  buying an REO:

 

  1. You can arrange for financing. Consider being pre-qualified for a mortgage, if possible.
  2. There are no other liens against the property.
  3. You will not have to evict current residents.
  4. You can make your offer on the home subject to a home inspection to avoid structural and maintenance surprises.The longer the foreclosed home has been on the market, the better your chance of getting a lower price. When buying a foreclosure you’ll have to move fast and be patient with the bank, the process takes time.

 

Buying from Government Agencies

Several government agencies have collaborated to sell foreclosed homes to citizens through HomeSales.gov. This web site offers up-to-date information on homes for sale by the U.S. federal government. These previously occupied homes are sold at public auctions or other methods depending on the property.

 

You can buy a home from the U.S. Government, but you have to hire a real estate agent, broker or servicing representative to submit your offer or bid.

 

Keep in mind, both HUD and Department of Veterans Affairs have foreclosed homes available to sell to the public.

 

  • You can only buy these types of homes if you plan on living in it as your primary home. The only exception is if no one buys the home, then it may be made available for investors to buy. HUD also offers the Good Neighbor Next Door Program to help public servants (teachers, firefighters, and police officers) purchase a HUD home at a discount.

4 Friendly foreclosure tips:

  1. Do your due diligence. Before buying the foreclosed home do a title search to discover all liens and back taxes owed on the property. (If you have the time, some of the information you’ll need is available for free from the courthouse or county records.)
  2. Select a real estate agent or lawyer who is experienced with the purchase of foreclosures.
  3. Compare the asking price of the home the latest sale price of similar homes in the neighborhood be sure you’re getting a fair deal.
  4. There will be more paperwork involved when you buy a foreclosed home.

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