What is Foreclosure?
Foreclosure is a process that allows a lender to recover the amount owed on a
defaulted loan by selling or taking ownership (repossession) of the property
securing the loan. The foreclosure process begins when a borrower/owner defaults
on loan payments (usually mortgage payments) and the lender files a public
default notice. The foreclosure process can end one of four ways:
The foreclosure process represents three bargain-buying opportunities.
Pre-Foreclosure (NOD, LIS):
Buying a property in pre-foreclosure involves approaching the
borrower/owner and offering to buy the property. The borrower/owner can walk
away with something to show for any equity in the property and avoid a bad mark
on his or her credit history. The buyer has time to research the title and
condition of the property and can realize discounts of 20-40 percent below
market value.
Auction (NTS, NFS):
If the loan is not reinstated by the end of the pre-foreclosure period,
potential buyers can bid on the property at a public auction. Buyers often are
required to pay in cash at the auction and may not have much time to research
the title and condition of the property beforehand; however, a public auction
often offers some of the best bargains and avoids the unpredictability of
dealing directly with the borrower/owner.
Bank-owned (REO):
If the lender takes ownership of the property, either through an agreement with
the owner during pre-foreclosure or at the public auction, the lender will
usually want to re-sell the property to recover the unpaid loan amount. The
lender will probably make sure the title is clear for any buyer, but the
potential bargain is typically less than a pre-foreclosure or auction property.
Before you buy
You'll need to make sure you're armed with the resources you'll need to buy
foreclosed properties.
Free Translation Link Me Babe Dating - RSVP Dating: Explore the possibilites Hello Darling dating Free Tattoo Ebook Miniature Trading Australian Auction Free Website Creating Software Affiliates and webmaster's forum Freebie Newsletter