Looking to buy a new home but worried you won’t be able to afford the monthly mortgage payment that comes with it? If the bank takes the property to the foreclosure auction and extinguishes junior liens, they will be creating equity in a matter of minutes. A large portion of work will come from the relationships that you build with Real Estate Agents (“Realtors”) who list bank-owned homes (often referred to as REO listings).
If you really love the house, don’t worry about paying a little bit more to get it. If your landlord defaults on a mortgage loan and doesn’t work something out with the lender, the home may be sold at a sheriff’s sale. Once you choose the method, you may find a real estate agent who specializes in foreclosed homes.
Compared to other foreclosures, the bank foreclosed houses are open in letting you inspect and examine the house first. There is no shortage of buyer options with Look for Smart Score as you look through MLS, foreclosure, rent to own, for sale by owner (FSBO), and other real estate deals.
Under strict foreclosure, which is available in a few states including Connecticut, New Hampshire and Vermont, if the mortgagee wins the court case, the court orders the defaulted mortgagor to pay the mortgage within a specified period of time. With foreclosure homes hitting the market, many prospective buyers are eying these homes, to make a bargain and purchase a good house at a low price.
Note: foreclosed homes are also called real estate owned (REO) properties. All of these homes aren’t going to be occupied by the ownersâ€”many will be rented out, just as yours will be. That makes for a concentration of rentalsâ€”in short, a glut on the market, which will drive prices down.