When real property accounts become seriously past due, the County may initiate a foreclosure proceeding. The traditional way to buy a foreclosed home is at a real estate auction. Buying a foreclosed home at an auction can be one of the most lucrative and popular ways of acquiring investment properties. It’s important to know that most lenders have prescribed “price caps” for the maximum amounts that they’ll pay for services.
Government agencies typically take ownership of homes after the owners default on mortgage loans insured by the federal government. After each sale a complete list of the foreclosed properties involved in the sale may be downloaded from this website at no charge.
If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. When a foreclosed house in good shape and in a desirable location gets to market, it often attracts multiple offers, even in this struggling real estate market.
Before you start looking to buy a foreclosure at foreclosure auctions or REO listings, make sure you can get a mortgage. Foreclosures always need a thorough inspection due to the unknown nature of the property. When companies, governments or individuals want to liquidate foreclosed real estate, they can turn to auctions as a means to an efficient and quick sale.
The first step of a foreclosure is for the homeowner to default on the loan by missing a month or two of payments. At this stage the bank has secured the home at an auction and is now selling the home to recoup what’s owed on the property. Education is imperative in any property sale, and this is particularly true for purchasing foreclosures due to the complex nature of these sales.