Tuesday, October 06, 2009
Missed Payments:
Pre-foreclosure or Notice of Default
Foreclosure Auction:
Post Foreclosure: Bank-Owned Property REO
Most of the buyers think that buying foreclosed properties will make a great deal. This is true, but there are certain pitfalls also. By reading this article, you will know which type of property is best for you! The stages and phases of foreclosed process are as follows:
Missed Payments:
Advantages:
Pre-foreclosure or Notice of Default
Advantages:
Foreclosure Auction:
Advantages:
Post Foreclosure: Bank-Owned Property REO
Advantages:
Disadvantages:
Pre-foreclosure or Notice of Default
Foreclosure Auction:
Post Foreclosure: Bank-Owned Property REO
Most of the buyers think that buying foreclosed properties will make a great deal. This is true, but there are certain pitfalls also. By reading this article, you will know which type of property is best for you! The stages and phases of foreclosed process are as follows:
Missed Payments:
Advantages:
- Seller will try for quick sale, may try all the measures to buy the property below market price.
- Seller may do the necessary repairs
- Buyer can use regular mortgage financing
- Buyer has the right to inspect the house within contingency period
- Seller should provide the necessary information like repairs, problems and history of property condition etc.
- Sellers still have to move out.
Pre-foreclosure or Notice of Default
Advantages:
- Seller wants to sell the house fast, which can increase buyer’s bargaining power.
- Buyer can do the necessary inspection during due diligence period.
- Lender may not approve price, seller concessions or closing cost credits.
- Short sale generally takes 45-90 days to close.
- Sellers still have to move out.
Foreclosure Auction:
Advantages:
- Property will generally be sold for outstanding mortgage balance owned to lender- this can be a low price for the property.
- Cash payment requirements reduce competition.
- No inspections allowed
- Bank cannot provide property history to buyers
- No commissions will be paid; buyer must pay for their own representation.
Post Foreclosure: Bank-Owned Property REO
Advantages:
- Bank just wants to sell the property so will negotiate price, down payment, closing costs, escrow length etc.
- Inspections are allowed during contingency period.
- House will be vacant.
- REO sales close within a normal escrow period of time.
- Banks require additional paperwork
- Bank will not agree to do any repairs.
posted by Avoid foreclosure, We buy houses, Stop foreclosure
@ 4:01 AM
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