Archive for October, 2008
Pre Foreclosures in Chicago a Viable Option
Tuesday, October 7th, 2008Foreclosures in Chicago are still increasing in numbers. While this is not a good time for home owners going through tough financial times, for people who are looking to buy a house, this is being looked upon as the right time to do so. Since foreclosure homes sell at discounted prices, they should not be overlooked.
Homes in pre foreclosure have been known to sell at close to half their valued market price. While this is not everyday occurrence, homes in pre foreclosure selling at discounts of up to 20% is fairly common place.
A home enters the pre foreclosure stage after the lender serves the borrower with a default notice, which states the lender’s intention to foreclose on the home if the default on the mortgage in question is not fixed in the given time period.
Usually, the home owner can try and sell the house anytime before the scheduled foreclosure auction. By selling the house, a home owner can usually repay the lender, especially if the amount remaining to be paid back is lesser than what the home owner receives for the house.
In cases where the amount that remains to be paid back to the lender is more than the best offer made on the home, the lender can choose to accept the offer and waive the balance off. Almost all pre foreclosures need to be sold in accordance with the lender, more so if the house is to sell for lesser than the money remaining on the debt.
A good thing about buying pre foreclosures is that you get to deal directly with the home owner. This eliminates the need to deal through agents and attorneys. However, if you do want a professional to guide you through the process, plenty of help is available.
While pre foreclosures can offer some great deals, precaution must still be maintained. Since monetary instability is one of the primary reasons for a home owner to sell in pre foreclosure, there are chances that not too much money has been spent on the house’s upkeep in the recent past. A thorough inspection of the house will give you an estimate of what you would need to spend on renovating/repairing the house. This should play an important role in your reaching an offer price for houses for sale.
Any existing secondary liens or unpaid taxes should also be looked into, as once you buy the house, you could become liable for these.
So if you do plan to buy a pre foreclosure home, try and look at as many houses as you can; the more the houses you see, the better the chances of a great deal.
Foreclosures in Atlanta – A Brief about Auctions
Monday, October 6th, 2008Foreclosures in Atlanta continue to accumulate and this has affected the prices of homes to a considerable extent. With home prices down, and relief on the way in the form of federal funding, many people are now looking to start buying homes. These home buyers include investors and people wanting to buy a home to move into.
Since foreclosure homes generally come at discounted prices, they have become the preferred choice of many home buyers. You can buy a home during pre foreclosure (directly from the home owner), through the lender after foreclosure, or at the foreclosure auction sale.
After the home is foreclosed upon, and before it is transferred to the lender, an attempt to sell it is made at an auction that has been notified publicly. There are no pre requisites; as far as you have the money, you’re welcome. If not handled correctly, foreclosure auctions can be tricky. However, with some practice and research, one can start looking for bargains at auctions.
Before you get on with your efforts to buy at an auction, you should know these basic things.
Before you decide to bid on a home, go through the County’s public records to check for any unpaid taxes or secondary loans attached to the house. If they exist, they generally become the new home owner’s responsibility. You can engage the services of an attorney who deals in real estate to do this for you.
Inspecting the home is important, however, if the house is still occupied, there are chances that the occupants wouldn’t be very cooperative in having the house inspected. This, though, should not deter you from asking. If you cannot get to inspect the house from the inside, and since it is a foreclosure home, you would need to keep yourself prepared for incurring substantial expenses in giving the house a facelift. If you do get to inspect the house, deciding on a bid amount gets easier as you know the extent of repairs the house would need.
At the foreclosure auction, the home is usually given to the person who places the highest bid. A deposit needs to be paid as a cashier’s check or as cash immediately after the auction, and the remainder of the money needs to be paid within a stipulated period of time.
Foreclosure auction notices are generally put up at county courthouses. You can also go through local news letters and newspapers for auction details. Banks are also known to give out foreclosure auction details to home buyers.
It is always suggested that you know in advance, how far you are willing to go. Bidding in the heat of the moment can land you into trouble. A foreclosure auction calls for a cool head.
Now is a Good Time to Buy Foreclosures in Houston
Monday, October 6th, 2008With the number of foreclosures in Houston continuing to rise, prices in the housing sector continue to fall. With the government planning and implementing bail out plans to rectify the situation, many people are hopeful of some stability in the market.
This is prompting a large number of people to buy homes that are associated with foreclosure (as these are traditionally cheaper than homes not affected by foreclosure within the same neighborhood). The provision of an interest free $7,500 loan for first time home buyers, as part of the recently passed housing bill, is also encouraging this buying trend.
A home can be bought during various stages of the foreclosure process. It can be bought during the pre foreclosure stage directly from the home owner. If the home is foreclosed upon, you will need to buy it at a publicly notified auction. If the house passes the auction stage without being sold, you would need to buy it from the lender.
Looking for homes that are affected by foreclosure is not at all hard. The internet serves as a good source of foreclosure lists. The number of internet sites that provide foreclosure listings continue to rise, and a majority of them carry listings from across the country. These sites have in built search engines that can find you homes based on budgets, geographical locations, etc. It is best to register with a couple of well established sites as they would carry comprehensive lists that are updated regularly.
Lenders/banks which deal with home mortgages can also be contacted and so can real estate agents. Legal magazines, newspapers and newsletters can also be referred to for foreclosure listings.
A home enters the foreclosure process when the lender issues a foreclosure notice to the home owner (this happens after the home owner has been unable to pay his mortgage payments regularly). The property can then be sold by the home owner to take care of the defaulted loan, as this would help avoid foreclosure.
After it passes this stage, a home can be bought at an auction. While auctions are known to result in some good deals, it is best left to the pros. Buying at auctions can be perilous, as the funds required to repair the house after buying it can be unexpectedly high.
If a home fails to sell at an auction, it can be bought through the lender who holds the deed to the property. Banks are generally in a hurry to get rid of foreclosed properties, as having them on their inventory increases their overhead costs.
As far as you have done adequate research, and are confident that you are getting a good deal, there is no reason why you should prefer one stage to the other. Remember, the key word in looking for a foreclosure home is ‘research’.
Foreclosures in San Antonio Explained
Friday, October 3rd, 2008A home risks facing foreclosure when the home owner has trouble keeping up with the monthly mortgage payments. A large number of foreclosures in San Antonio are already present, and with the financial problems of many households continuing to rise, more are on their way to join the foreclosure bandwagon.
The increase in foreclosures has been a reason for the prices of homes in San Antonio declining. With the government taking unprecedented measures to bring a check to the current situation, this is being viewed as a good time to buy residential property. Since foreclosure homes are generally sold cheaper than other homes within the same neighborhoods, they have become the preferred option.
The first thing to do would be to gather all the available resources that could help you find the right foreclosure property. Foreclosure homes can be found on the internet in large volumes. There are a host of web sites that cater to region specific demands. While some of these would give you free listings, the more comprehensive ones might charge you a subscription fee.
Lenders who have foreclosed property on their inventory are more than happy to provide foreclosure lists to probable home buyers. Real estate agents generally have information about foreclosure homes within their neighborhoods. Local county courts can also be approached for lists of homes that have been served with foreclosure notices.
Foreclosure proceedings on a house begin once a foreclosure notice is served. The home can then be bought from the home owner if the home owner wishes to sell it. Not all home owners facing foreclosure want to sell their homes. Those who do, primarily do it so that the debt in question can be paid. Since home owners facing foreclosure do not have the benefit of time on their side, they can accept offers that might seem quite low.
After the pre foreclosure stage, a home can be bid for at the foreclosure auction. Buying a home at an auction requires the buyer to have ready funds, either in the form of cash or as a cashier’s check, and a partial payment needs to be made immediately after the auction. While this might work as a deterrent for some, others view it as a benefit because it reduces competition.
After the auction, the home is passed on to the lender. Lender’s usually want to sell the foreclosed home quickly because having a foreclosed home on their books results in additional costs. Banks are known to offer significant discounts while selling foreclosed homes. There are instances when banks offer to take care of the property’s closing costs as well.
Foreclosures in Orlando a Good Investment Option
Thursday, October 2nd, 2008While prices of homes in Orlando have fallen over the past year, some respite is in sight with the government passing measures to try and fix the existing home mortgage situation. While prices in Orlando have fallen, they might not continue to do so for long.
Traditionally, homes associated with foreclosures sell for lesser than other homes within the same neighborhood. This, therefore, is a good time to buy a home associated with foreclosures in Orlando.
Bank foreclosure homes can be bought at three different stages. Homes that are facing foreclosure are sold as short sales. Once a house has been foreclosed upon, it sells at a public auction. If the house still does not sell, it becomes an REO property and can be bought directly from the bank.
A home can sell at the pre foreclosure stage as a short sale, when the existing homeowner wishes to avoid foreclosure. While buying a home at this stage, make sure you check for any unpaid property taxes or existent second liens on the property. Since the primary concern of a majority of the home owners opting for short sales, is paying back to the lender what is owed on the property, these homes can sell for substantially lesser than their market values.
Homes that are foreclosed upon are first put up for sale at courthouse auctions. Buying a home during this stage can be a risky proposition as these homes are not open to inspection, and any costs involved in repairing the house post the auction need to be borne by the buyer. However, some very good deals can be obtained if a good amount of research is put into the process. Ideally, the auction you decide to bid at should not be the first auction you attend.
When a home passes the auction stage, it passes on to the lender who holds the mortgage on the property. It is then referred to as a Real Estate Owned (REO) property. While buying a foreclosure home through a bank, previous arrears associated with the property need not be worried about. Also, the previous home owners would have been evicted before you buy the home. The primary concern of the bank, in these cases, is to recover the balance on the unpaid mortgage associated with the foreclosure including the costs they had to incur during the process. This, therefore, leaves good room for bargaining.
Lists of homes that are involved in foreclosures in Orlando can be found in local newsletters, the internet, local estate agents and lending institutions that deal with home loans. Make sure you explore all possible avenues before reaching a decision.
Pre Foreclosures in Dallas – A Good Deal
Wednesday, October 1st, 2008Foreclosures in Dallas continue to rise and prices of homes are considerably lower than what they were a year back. Foreclosure homes are known to sell for lesser than their prevalent market prices. This is prompting a large number of people to buy a home associated with home foreclosures. Also adding to the cause is the provision of a $7,500 loan for first time home buyers as part of the recently signed housing bill.
A home is in the pre foreclosure stage when a borrower falls behind on the monthly payments, but is yet to face the public auction. Home buyers can go through delinquency notices that lenders have to file with local county courts to look for houses that are in pre foreclosure. With this information in hand, you, as a home buyer, can look at the homes that you have the details for, and if you like one that you see, you can directly communicate with the home owner.
While borrowers in default do look for ways to keep their homes, a large number of people want to sell their homes to avoid foreclosure. The main concern of these home owners is to pay back to the lender what they owe of their mortgage. This helps them avoid foreclosure, and the negative credit score that is associated with foreclosure.
While a 10 to 20% discount on pre foreclosures is almost a norm, there have been instances where homes in pre foreclosure have sold for as little as 50% of their existent market value.
Home owners facing foreclosure do not normally have the privilege to wait for the right offer to come by. With paying back the lender being their foremost concern, they sometimes accept really small offers, so long as they cover the amount that would clear their debt.
Although buying a home during pre foreclosure presents some very good deals, one should not forget to look at the public records to find out if the home has any more loans attached to it or if the existing home owner has any taxes on the property that need to be paid. Once the home is sold, the new home owner becomes responsible for these. Also, these would play a role in reaching on a suitable price for the home in question.
The internet is a good place for looking for homes in pre foreclosures. There are a large number of web sites that offer specific searches for this purpose.
There is currently no dearth of pre foreclosure homes in Dallas, so if you are willing to take some time out and look, you can definitely find a house that fits your needs.
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