Foreclosures in U.S. have reached an all time high with lenders on a selling front. In fact, many people buy foreclosed homes at auctions, sight unseen. When a homeowner can not pay their mortgage the home goes into the foreclosure process. You also need to get preapproved and let your lender know you are focusing on foreclosures. The old adage of “Buyer Beware” certainly holds true when it comes to buying foreclosed property.
The goal for the owners is to offer their home at a price that’s low enough to ensure a quick sale before they fall behind on their monthly payments. The best news for buyers is that banks are required to pay off any liens filed against these properties. However, when one is still unable to afford properties at market price, an alternative is to go for a foreclosed property for sale.
As for the real estate crises and housing price declines, well there is no doubt that we are in a real estate crisis, however, I’m hearing many experts say that we are either at the real estate bottom or will be, within the next six months. Find foreclosure properties that are going to sales or auctions by looking for Foreclosure Salesâ€ or Sheriff’s Salesâ€ or Auctionsâ€ in your newspaper, real estate magazine or by contacting the county clerk’s office.
The buyer has to check for the available property auction on the internet or in newspapers which shall be published by the lender or auctioning authority. Financing is possible for a foreclosed home, but due to the competitive market, it’s best to secure this prior to making an offer.
As you’ll learn below, everything from the timeline to what to expect from the seller is different with foreclosures, and the more experience your agent has with them, the better advice they can give along the way. This combined with the government providing the banks with basically unlimited liquidity has made this perhaps the best time in our lifetime in which to invest in real estate.