Are you
looking to buy an affordable home? If
you are, you may turn to foreclosure property listings online. Foreclosed properties are often available for
sale at a steeply discounted price. With
that said, buyers need to be aware that buying and living in a foreclosed
property isn’t as easy as it sounds.
That is why some buyers rather opt for properties that are referred to
as REOs. These properties are real
estate owned.
As
previously stated, buying and moving into a foreclosed home isn’t always a walk
in the park. For starters, some states
tend to draw out the process. For
example, just because you are the winning bidder at a foreclosure auction, it
doesn’t mean that you can move in right away.
In fact, you may still end up with no home. Why? Because
many states have redemption laws. These
laws gives delinquent borrowers time to get their mortgage back in good
standing.
Next, it is
important to know that many people do not want to leave their homes. While many will do so when faced with a legal
eviction notice, you may be surprised how many occupants put up a fight. In fact, there are even cases where lawsuits
were brought against the new buyers! If
you are unable to afford the cost of legal representation, foreclosures may not
be in your best interest.
Liens and
backed taxes also need to be examined.
Depending on the state in question, buyers of foreclosure properties may
be responsible for any outstanding liens or backed taxes. Do not let this come as a surprise to you
after the fact. If you are not careful,
this can significantly increase the cost of a foreclosure, possibly making it
no longer affordable. For your own
personal protection, always consult with a professional before buying a
foreclosed property, especially at a real estate auction.
Since the
buying of foreclosures can be considered a risky business, there are many
homeowners who opt to purchase real estate owned (REO) home or property. As for what these properties are, the
original lenders own them. During this
process, the lender is also commonly referred to as the investor. Often times, the lender in question will buy
back the home in question at a real estate auction. This is often done when not enough interest
in generated in the auction or when the bids are anticipated to be or are
low.
Many
experts state that buying an REO home is the best way to buy a property that is
in trouble. Why? Because at this stage, the home is likely
cleared of all occupants. Financial
lenders often have the means and the power to evict all occupants, even those
who are against leaving. The only
individuals you should have to deal with are the investors, which would be the
bank. In rare events, a bank may turn
over the sale of the home to a real estate agent. However, since real estate agents take a
percentage of each sale, the asking price of an REO home is likely to
increase. For the best price, deal with
banks directly.
As for how
you can find real estate own properties, visit all local banks in your
area. Ask if there are any real estate
owned properties currently available for sale.
If so, request information on those properties. The online websites of nationally owned, but
locally operated banks can be examined as well.
Many times, REO properties are listed for sale online. Remember, the same information can be
acquired by scheduling an in person meeting the bank’s loan officer or real
estate advisor.
As an
important warning, whenever you are interested in buying a home, whether it be
through a traditional real estate agent sale, an REO, or a foreclosed property,
never enter into any agreements without the proper legal knowledge. Always first hire or consultant with an
attorney who specializes in real estate or foreclosures.
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