Foreclosure question?
Question:
I would like to bid on the house and want to know the whole foreclosure process.
Thank you.
Answer:
Laws vary from state to state, but some things you need to watch out for.
View the home if you can. People don't like being evicted and sometimes take every fixture, faucet, lightswitch, etc., or just trash the place in an awful way.
Go to the courthouse and check for liens against the property and back taxes. If you buy the home and it's taxes and liens transfer to you.
Be approved for financing, and be sure the terms are specific. Be prepared to pay a downpayment at the auction, the terms are usually stated.
Ask local people questions and maybe you'll find someone who has been through the process in your area. I wish I could be of more help.
A house goes into foreclosure when the current home owner does not, or cannot, make the required payments on their home loan and, as a result, the bank evicts them, takes control of the property, and sells the house at auction to recoup the remainder of the debt.
Foreclosures can be a great way to buy a house below market value, as the bank doesn't really care if they make a profit, they just want to get their money back. There are however several pitfalls you have to watch out for.
There is ton and tons of information online that can help guide you through the process and give you an idea of what to expect. I recommend http://foreclosuresource.googlepages.com... as a good starting place for learning about the foreclosure process.
Hope that helps!
Although procedures vary depending upon the jurisdiction, typically the lender's trustee manages the auction. Sometimes it's a "closed bid" process and all bids are opened at a specified time. Otherwise, it's an open auction. Sometimes there is a minimum bid set, sometimes it's open. The bidder must be ready to complete the sale within a specified amount of time (usually 15 days) and must hold the property by a certified check in an amount that is usually about 10% of the pre-auction estimate of value. The lender will try to get at least the amount of the outstanding loan.
Be sure to check the neighborhood for comparable sales and listings and set a maximum bid in your head. Then, don't get caught up in a bidding war that pushes you over your limit. There's no going back once your bid is accepted.
Try to inspect the house prior to the auction. Usually there is a date and time for inspections to take place. Have a professional home inspection done. It can save you thousands later on.
here is a website that will tell you all the state laws and processes for foreclosures.
http://www.foreclosures.com/pages/state_...
just click on your state...
good luck :)
Would you like to bid on commercial lenders' foreclosures or the govt foreclosures? You should probably start out with govt tax deed foreclosures since it is much easier than what banks own. It also cost less.
Web site suggestion with free foreclosure listings:
http://www.investingwithoutlosing.com...
Suggested reading from any bookstore:
Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa
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