What are Foreclosure Listings?
Foreclosure is basically a lengthy process which is often quite lengthy where if the homeowner has defaulted on the payments, the lender or the bank reacquires the home. The ownership of the house now gets transferred to the bank who sells it at the auction. The house thus comes under the tagline of Foreclosures Listings. Thus, when the homeowner fails to make mortgage payments, the concept of foreclosures commonly comes about. But yes, it might also happen for other reasons also, say for example, unpaid property taxes.
From the perspective of a buyer, purchasing a home from Foreclosure Listings has three distinct stages: pre foreclosure, auction and post foreclosure. You can purchase homes in any of these three stages. During the pre-foreclosure period, you are actually purchasing the house from a struggling homeowner who is trying to ward off foreclosure. But, in the other two stages, instead of a mortgage, you are working with a bank that has wound up with a property on its ledgers.
The Key benefits of purchasing a home form Foreclosure Listings:-
From the purchaser’s point of view, each stage of foreclosure has its own benefits which are summarized as follows:
Pre Foreclosure: When there is a month’s long missed payment period, before the lender decided to institute foreclosure, and enlist the house in Foreclosure Listings, it comes in the Pre Foreclosure Stage. It also includes the period after the lawsuit has been filed or the period after the initial notice when the seller faces a countdown to the auction.
(1) Bargaining Power: During this period, the seller might be motivated to attain a fast sale and also willing to provide price concessions and, while also doing repairs, especially if the seller is not underwater on the mortgage. The purchase price will be less than what the seller owes on the mortgage, if it is a short sale. Both the seller and the lender might be motivated to make a concession as both of them during this stage are actively trying to enlist the house in Foreclosure Listings.
(2) Title Knowledge and Condition: A complete history of the property’s condition has to be given by the seller. Within the standard due diligence contingency period, the buyer can do normal title searches in order to obtain desired inspection.
(3) Flexibility of Financing: The seller may be willing to formulate different mortgage financing in the form of a mortgage supposition or a lease purchase agreement and also the buyer can use regular mortgage financing during this Pre Foreclosure Stage.
Auction: If the seller is not able to sort out the situation, it comes in the stage of auction. Thus, it permits the lender to auction off the property, to recover what it is owed. In order to encourage bidding, the bidding will start at the outstanding balance of the mortgage and fees, or maybe sometimes less than that.
(1) Price: At a substantially lower price, you can get the property which is obviously below the market value.
(2) Time: Unlike Pre Foreclosure purchases, here there is no need to spend weeks or months in negotiations.
(3) Zero Competition: In this stage, there is a slimmer competition, owing to the fact that most auctions require cash bids.
Post Foreclosure: The home becomes a real estate owned property or a bank owned property, if the home is not sold at auction. Then, the home comes under the tagging of Foreclosures Listings. In this stage, the lender can sell it at a later REO auction or at the general real estate market.
(1) Flexibility of Financing: The sale has a normal closing period and also the purchaser can use regular mortgage financing.
(2) Title Knowledge and Condition: The purchaser can get the usual inspections and also the title will be very clear during this stage. The home is likely to be vacant.
Now, that you have gone through all the benefits of purchasing a house from Foreclosure Listings, Why wait any longer? If you are looking for a good deal and purchase a house at lower rates than the market value, its better you have a look at the Foreclosure Listings near you, before jumping into things.