Posts Tagged ‘Property’

Everything You Need to Know About Foreclosure Listings

If you are thinking of purchasing a new residential property or home to live in, then you might want to take a look at your local foreclosure listings through your local directory, or through the internet, such as www.carolpefley.com. Foreclosure is technically known as the legal process wherein an owner’s right to his property is terminated. The most common reason for this is default and other terms and agreements stated in his contract. These properties that undergo a foreclosure are usually sold at public auction. These properties are instantly added to the foreclosure listings of your city or town, the proceeds of which are given and applied to the mortgage debt that the previous owner owed; that is why these foreclosed houses and properties sell quite fast.

You may search for some of these foreclosure listings online at www.carolpefley.com that cater to these foreclosed homes and properties. It is important to know and to understand that the house was put up for sale, being a foreclosed home, because the previous homeowner was not able to pay the mortgage fees imposed on his home. Given this situation, the lender, of course, takes back his property, seeing that he cannot benefit from it. There are various legal steps also that are involved in this sort of dealing and they vary through different states.

When purchasing a home or residential property from the foreclosure listings, there are some steps that you should do before deciding on which one to buy. First, you might want to consider an investigation and thorough search of the advantages of purchasing a foreclosed home. Since there is an urgent need for the bank or lender to recover their investment as soon as possible, foreclosed homes are often sold at huge discounts.

When shopping for homes in foreclosure listings, consider an agent such as myself, at Realty World Platinum who is experienced with the job. This is important because there are some sellers who won’t allow a sale from buyers who are unrepresented. 

Written by Carol Pefley

www.carolpefley.com

Lastly, make sure to check the house for any damages and the like. Do not forget to look for foreclosure listings on www.rwplatinum.com. It would also be a good idea to ask if there are any bargaining opportunities that can save you money as well. There is also a lot of paperwork involved, so get ready for that.

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What Are Foreclosure Sales

Foreclosure sales occur when a be a bank or a building society, sells the property in possession of a homeowner when the latter defaults on his principal or interest payments on his or her mortgage. When a buyer wants to purchase real estate, he borrows the money from a lender by getting into a contract. One of the conditions of the contract is that in case of a default in the principal or interest payments, the lender can take possession of the property and sell it to recover the mortgage debt and legal costs. Foreclosure is the legal proceeding by which the mortgagor’s equitable right of redemption is terminated by the lending party.

Before foreclosure sales happen, the homeowner is given the chance to pay the lender the outstanding of the debt and redeem his property. If the borrower fails to pay within three to six months, then a Notice of Default is recorded by a trustee against the borrower and a reinstatement period of about five days starts after which the home is auctioned off.

After the default, a foreclosure sale date is established and a Notice of Sale is received by the owner and also posted on his property. The Notice is recorded at the County Recorder’s office and published in newspapers. At the Trustee Sale, the property is sold off to the highest bidder who receives the Trustee’s deed to the property. Payment is usually made in cash in foreclosure sales.

The opening bid in foreclosure sales is set by the foreclosing lender. This includes the loan due, interest accumulated and other legal costs undertaken for the auction. If there are no higher bids, then the property is purchased by the attorney conducting the sale, on behalf of the lender. In the above case, the property is considered a Real Estate Owned. This is likely to happen if the property‘s worth is less than the amount due to the lender.

The properties listed for foreclosure sales can be found by various ways. One way is to search public records. Visiting the County’s Office can provide us with information on a Notice of Default or a Notice of Sale. This can be done free and one can get to know about the latest foreclosure sales here. Alternatively, one can search online for foreclosure data providers. By availing an online listing service, one can check the free trial offers to see which provider best suits you. Both national and regional foreclosures are listed.

Contact me if you need help with any and all of your real estate needs. 

Written by Carol Pefley

www.carolpefley.com

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Foreclosure Sales– What Every Homeowner Should Know

 Summary: There are several procedures to be followed before a bank can make a foreclosure sale due to non-repayment by a homeowner. At any stage of this process, the homeowner can repay the bank to get back his property. There are also other options to retain the property for which a homeowner can get advice from a debt counsellor.

A foreclosure sale takes place when a borrower is unable to make payments towards his mortgage as per the agreed schedule and the bank recovers the money owed to it by selling the property. When a mortgage is entered into, the title remains with the bank and does not get transferred to the home owner until the last scheduled payment towards the mortgage is made. However, there are certain procedures to be followed before the bank can sell the property and every home owner should be aware of their rights with regard to a foreclosure.

The exact procedure for a foreclosure sale may vary from one State to another; however before the bank can sell the property, there are certain procedures to be followed. As the first step in the process, the bank has to send a formal communication by certified mail to the borrower informing him about the default in payment. The letter usually outlines the period of time and the specific amount that the home owner has to pay the bank in order to avoid foreclosure.

If the homeowner is unable to pay the amount due to the bank within the period specified in the notice, then the bank can proceed with the foreclosure either through the judicial process or a non-judicial remedy depending on the laws of the State and the clauses in the mortgage deed. Under the judicial process, the bank will have to approach the court to get a clearance to sell the property. Once the bank gets the authorization to sell, then a formal notice regarding the sale is sent to the homeowner who has to vacate the property within a specified time.

The bank then puts up the property for auction or sale and the property is sold to the highest bidder if it is close to or higher than the expected price. In case the bids are not suitable, the bank may purchase the property with the intent to resell at a later date. A point that every homeowner should be aware of is that at any stage in the process before the final foreclosure, he can choose to repay the bank the amount due and take possession of the property. There are other options available to a homeowner such as negotiating with the bank to accept a lower payment, refinancing the mortgage, selling the home, making a short sale or modifying the loan. For help in finding out the best option, contact me!

Written by Carol Pefley

www.carolpefley.com

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Foreclosure Sale – How You Can Benefit From It

 A foreclosure sale occurs when a person who takes out mortgage against a property is unable to make his payments as per the schedule and the bank or the lender moves the court to sell the property in order to recover the amount that they are owed. When a mortgage is taken, there is a formal agreement between the buyer and the lender, whereby the lender retains a right over the title of the property until the time that the buyer makes all the payments towards the loan.

 A foreclosure sale benefits the mortgage lender, as it enables him to put the property on the market and utilize the sale proceeds towards recovering the amount due to him. In addition, a foreclosure sale can be beneficial to a prospective buyer who is looking to buy a property. How does it benefit a prospective buyer?

 For a first time owner who is on a budget, his dream home can get bigger if he is able to get it at a cheaper price during a foreclosure sale. Although banks try to make a profit out of foreclosure sales, in times when the real estate prices are in a slump, they may not be able to get the market rate and will be willing to sell it for the best offer. By looking out for properties that are being sold due to foreclosure, a buyer can get a bigger house than he normally would with his budget.

 A foreclosure sale can also benefit an investor who is looking at making gains through investing in real estate. By buying the property at a price lower than market rate, he could hold on to the property until the market picks up, so he can make a profit. Alternatively, he could spend a small amount towards refurbishing or remodeling and then resell at a higher price thereby gaining a significant profit.

 However, before you buy a property during a foreclosure sale, you should make sure that you understand what you are getting into. Evaluate the risks before taking the plunge. In some cases the house would not be open for viewing prior to the auction. Hence, you will not be able to assess the condition of the property and may have to spend a large amount additionally towards repairs. Make sure that you evaluate or get an expert to help before deciding to buy.

Written by Carol Pefley

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