The Progression of Foreclosure Sales
There are several ways that one can go about looking for a home if you are really interested in acquiring a new one. You could chose to drive through a neighborhood looking for houses with signs on their lawns reading For Sale, or go to the web, then search the internet to see what kind of homes you can find. Alternatively, you could call an agent armed with your general information and leave them to do the work of looking for a home for you.
Alternatively, you can look for a foreclosure sale to get affordable rates for the house you are ready to purchase and can live with such a decision. Of course, there are some merits, demerits and caution levels when hunting houses that are under foreclosure.
If you are able to find a house in pre-foreclosure status you are at even greater advantage. This is because, if the house has not already been listed as foreclosed then you might just have the chance to discuss a quick sale with the homeowner together with their bank and reach an agreement. This can save you a lot of money than a house that had already gone through foreclosure sales.
Immediately after the foreclosure of the home, it will be directed to the listing agency where it will be marketed as being part of the agency's foreclosure sales. Alternatively, the home can be transferred to the property auction. In case the home proceeds to the auction, there is always a limitation on how low bidding could be. Generally, the biding amount is 2/3 the home's total value or the cost or value of the mortgage. Regardless of this, the price is still way below the prevailing market price.
Be sure that any of the homes that you intend to bid on at the auction are well and thoroughly inspected. This is because the property agency or bank might have failed to come up with another way to sell off the home and therefore are willing to sell it at a price that is affordable and can be bought very fast.
Besides being listed by real estate agencies, sales that have been foreclosed can also be listed as REO real estate. In simple terms, this means that the foreclosed homes are now the property of a realtor company having bought the homes at discounts from the concerned bank and now they are the only listing agency with a right to them.
One demerit of purchasing foreclosed homes is that the property was initially somebody elses. As a matter of fact, not all homeowners react in a similar manner upon losing their home. Due to this, you have to exercise caution and pay attention to even the smallest detail when you go for foreclosed sales. If you are not careful, a costly surprise will face you at some point in the future.
Another disadvantage of foreclosure sales is the time that would be required to complete a conclusive research for the property's title. Sales involving foreclosures may have involved bad debts, tax liens or other factors that get caught up with the house. Therefore, it is important that you carry out a thorough research from all angles before proceeding with the purchase.
Finally, a warning about foreclosure sales: buying a home is a very big decision even in the best of situations. The added stress of having a family that could be heartbroken, angry, depressed, desperate or all of the above can make it even worse.
When you have already decided to purchase a foreclosed home, it is prudent that you make the purchase in a town that is not your own. This is intended to make your stay as peaceful as possible.
Foreclosure sales can net you a bigger house than you could otherwise afford, but do not bite off more than you can comfortably chew.
It is important to note the factors that result to a foreclosure of a particular home and also remember that you can experience it too. Nobody is safe from unemployment or harsh economic times. The volume of sales as a result of foreclosure is a true testament to this fact.
Alternatively, you can look for a foreclosure sale to get affordable rates for the house you are ready to purchase and can live with such a decision. Of course, there are some merits, demerits and caution levels when hunting houses that are under foreclosure.
If you are able to find a house in pre-foreclosure status you are at even greater advantage. This is because, if the house has not already been listed as foreclosed then you might just have the chance to discuss a quick sale with the homeowner together with their bank and reach an agreement. This can save you a lot of money than a house that had already gone through foreclosure sales.
Immediately after the foreclosure of the home, it will be directed to the listing agency where it will be marketed as being part of the agency's foreclosure sales. Alternatively, the home can be transferred to the property auction. In case the home proceeds to the auction, there is always a limitation on how low bidding could be. Generally, the biding amount is 2/3 the home's total value or the cost or value of the mortgage. Regardless of this, the price is still way below the prevailing market price.
Be sure that any of the homes that you intend to bid on at the auction are well and thoroughly inspected. This is because the property agency or bank might have failed to come up with another way to sell off the home and therefore are willing to sell it at a price that is affordable and can be bought very fast.
Besides being listed by real estate agencies, sales that have been foreclosed can also be listed as REO real estate. In simple terms, this means that the foreclosed homes are now the property of a realtor company having bought the homes at discounts from the concerned bank and now they are the only listing agency with a right to them.
One demerit of purchasing foreclosed homes is that the property was initially somebody elses. As a matter of fact, not all homeowners react in a similar manner upon losing their home. Due to this, you have to exercise caution and pay attention to even the smallest detail when you go for foreclosed sales. If you are not careful, a costly surprise will face you at some point in the future.
Another disadvantage of foreclosure sales is the time that would be required to complete a conclusive research for the property's title. Sales involving foreclosures may have involved bad debts, tax liens or other factors that get caught up with the house. Therefore, it is important that you carry out a thorough research from all angles before proceeding with the purchase.
Finally, a warning about foreclosure sales: buying a home is a very big decision even in the best of situations. The added stress of having a family that could be heartbroken, angry, depressed, desperate or all of the above can make it even worse.
When you have already decided to purchase a foreclosed home, it is prudent that you make the purchase in a town that is not your own. This is intended to make your stay as peaceful as possible.
Foreclosure sales can net you a bigger house than you could otherwise afford, but do not bite off more than you can comfortably chew.
It is important to note the factors that result to a foreclosure of a particular home and also remember that you can experience it too. Nobody is safe from unemployment or harsh economic times. The volume of sales as a result of foreclosure is a true testament to this fact.
About the Author:
Dario Dingwalls real estate investment system offers investors a exclusive way to add US bank-owned properties to their real estate portfolio in the highest yielding markets. Dario has offered to provide readers with a free US Foreclosure Investment Research Analysis on one city thats offering superior Returns On Investment. Simply go to the MyRealEstatePortfolioUSA club site to get your copy.