Foreclosure?
Question:
Is it risky? what am i suppose to look for?
Answer:
Are you talking buying homes that have already been foreclosed on - now bank owned or a preforeclosure at an auction?
The first, you can just find an agent, a lot of times these are listed in the MLS. These are less risky, you have have inspections done, you know what you are getting.
The second option you wnat to know what you are doing or there is risk. You can get good deals, my boyfriend goes to auctions every day and has bought a few houses this way. These are listed in legal notices inyour local paper. The best you can do is a driveby on these homes, and do research on the county records office. You can pay to have a title search done if you don't know what to look for. You want to know if this judgment is a first or second mortgage. If it is a second you are going to get stuck with the persons first. Also, you don't know what kind of damage is inside the. Usually they are a mess since the people know they are going to lose it.
If you are a successful bidder you now are stuck with the former owners and trying to evict them.
You close on the deal.
Is it risky?! Foreclosure is what happens when a lender has not been paid and they "foreclose" on the collateral - (i.e. your home). Once the property goes into foreclosure you usually have to come up with the entire debt (entire loan amount) owed by a certain time. Some states however, give you the opportunity to just pay what you neglected to pay before foreclosure. Nevertheless the property is auctioned. After the lenders take what is owed to them, and taxes are paid, if anything is left over you get to take it. So, foreclosure is a bad thing. What you are suppossed to look for is letters from your bank saying "PAY ME." Most lenders use a 90 day industry standard before foreclosing - if you haven't paid in 90 days. However in commercial Real Estate, it is not unusual to see the lender able to exercise this option much sooner. Good luck - don't let them foreclose.
If you have to ask it's too late.
With your additional information. Go to a bank or mortgage company web site and look for "real estate owned". Those are the foreclosed properties. You can also call the bank and ask if they have lists or plan auctions of foreclosed property. It's not as easy as it might seem because the lawyers and the bankers buy up a lot of this stuff and resell it.
Duh, it buttholes your credit for starters. The bank will sue you in court, the court will enter a decree of foreclosure, then the bank or their agents sell the house at auction at the locla county courthouse. If they get less money than you owe, you have to pay thre difference.
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