What does the sales price of a foreclosure porperty actually represent?
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I do believe it is the price that the bank needs to come clear of thier costs.
Foreclosure means what is left owing on the house. The bank usually just wants to get their money back.
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien."
In the United States, there are two sorts of foreclosure in most common law states. Using a "deed in lieu of foreclosure," the bank claims the title and possession of the property back in full satisfaction of a debt, usually on contract. In the proceeding simply known as foreclosure (or, perhaps, distinguished as "judicial foreclosure"), the property is exposed to auction by the county sheriff or some other officer of the court. Many states require this latter sort of proceeding in some or all cases of foreclosure, in order to protect any equity the debtor may have in the property, in case the value of the debt being foreclosed on is substantially less than the market value of the immovable property (this also discourages strategic foreclosure). In this foreclosure, the sheriff then issues a deed to the winning bidder at auction. Banks and other institutional lenders typically bid in the amount of the owed debt at the sale, and if no other buyers step forward the lender receives title to the immovable property in return.
Yes it's possible, the price is what the previous owners OWED on the mortgage. So you can get a great house for a cheap price.
The banks usually just want what the balance is.
My brother got a wonderful home and 3 acres of land cheap because it was a foreclosure. It's valued at 20k more than paid.
You are probably seeing the delinquent amount, the amount of money of their missed payments.
The dollar amount for the sale of a foreclosed property is what is owed the bank. Whatever is left to pay the loan back. That is all the bank really wants.
However, you should be aware that some banks pay other companies to sell these properties for them so more than the loan may be involved in order to pay for their services. Also, they usually demand payment in full in cash.
Yes, on a lot of listings sites, the price is what the bank is asking. Now the pre-foreclosures are different. There is no price on pre-foreclosures, only an estimated market value.
Check out some more foreclosures at http://www.foreclosure.com
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