What is foreclosure?
Question:
I was looking for the houses' prices in southern california. they are very expensive.
Why a foreclosure is so cheap in compare with an ordinary home.
Would you mind telling me what foreclosure mean or introduce a website?
Tahnk you,
Answer:
foreclosure simply means the homeowners stopped paying on their mortgage for some reason or another. the bank takes the house back and will sell it cheap just to cover the outstanding balance.
Foreclosure is the process of the taking of a property from the owner for non-payment of a debt secured by the property.
Homes that have been foreclosed upon are eventually re-sold by the lender. Normally they pull full market price. If the price is lower than for similar properties in the area it's usually due to condition as opposed to the fact that it was foreclosed upon.
Someone who is in financial trouble and is facing foreclosure isn't motivated to keep up with regular maintenance. And some homeowners have been know to trash the place just before they are evicted following a foreclosure. At the very least they won't be wasting any time or money on cleaning the place up.
I am a Realtor in southern California and I work very heavily with the foreclosures. There are basically three steps in the foreclosure process in California. First, when the borrower is late with payments--usually 60 days or so--an NOD is filed. This is a Notice of Default formally telling the borrower that the foreclosure process has begun. As soon as 110 days after the formal filing of the NOD, then the NTS is filed. This is the Notice of Trustee Sale. This date is the date that the property will be sold (usually on the steps of the courthouse). The bank representing the trust deed which initiated the foreclosure process will have a representative at the sale to watch the procedure and if there are no bids for the property, then the bank bids and takes the property. This is the final step--REO. This means Real Estate Owned. Thank heavens banks still can't own real estate--actually, thank NAR and CAR so the bank has to sell the property within a specified period of time. The banks usually have Realtors that they work with, and so they contact the Realtor and tell them to get it on the market at a price agreed upon by the bank. Usually this price is below market value because there are deferred maintenance issues or else perhaps because the borrowers felt jilted they decide to trash the place. The bank is already into the property for a huge chunk of money, so they are not usually willing to do much to "cosmetically alter" the property, so they let it go at a price much lower than asking price. I would be happy to work with you in the event you decide you want to purchase a home in this way. My email is terra@terrabruns.com. Thank you for your time and I hope I was able to help.
If you are looking for foreclosures in California, check this site: http://california.e-foreclosuresearch.co... They have a very good list of foreclosures in California. Explaining a bit about foreclosures: Once a homeowner defaults on their home loan, the home becomes the property of the bank, or institution that made the loan. In order to regain the money lended on a loan these institutions put these homes for sale, usually at a price that is below market value. The more houses these institutions have, the better is the chance that they will sell it very cheap.
Foreclosures are cheap because they usually need some work - ranging from minor cosmetic repair to major structural. It is also sometimes difficult to find out information about them, and the good ones usually sell very quickly. Try http://www.emailforeclosures.com... to find out more.
Once you have picked the house you want to buy head over to
http://www.realestatefundingnetwork.com... to get your financing. You can also get a free report there
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