It is necessary before you buy foreclosures to be aware of the procedure.
It could influence where one can pick your point of entry to buy foreclosures.
A common misconception is that if a homeowner misses one payment the lender can institute foreclosure proceedings.
The whole foreclosure process is a lose lose situation for both the lender and the homeowner.
I will list the sequence of events in the foreclosure process below.
It is very important note that the homeowner has much more options in the early stages of the foreclosure process.
It is very important seek out advice in these early stages to understand what your options are.
For the investor, it is very important recognise that you are not limited to buying the house at the foreclosure auction.
I have tried to summarize the foreclosure process to four steps.
Four Stages At Which To Buy Foreclosures Initial Stages Homeowner misses some payments.
After repeated warning letters from the financial institution the matter can be transferred to an outside counsel after 3 months.
They will typically issue the homeowner with a formal notice of the foreclosure process Formal Foreclosure Process If the homeowner will not respond or come up with an unsatisfactory offer the attorney will proceed to advertise the foreclosure process in the legal or local newspaper.
Sheriffs Office The sheriff will inspect the house to examine whether the home has been abandoned or not.
In some states homeowner can have redemption rights for up to a year in which they can buy back property provided they pay the outstanding amount plus any unpaid interest, fees and penalties.
These redemption rights can change if the homeowner abandons the house.
Auction The financial institution submits the opening bid for the property.
This is typically the outstanding amount plus any fees,interest and penalties.
They may discount this amount to make it more inviting at auction.
Take Possession The highest bidder can take possession of the house after any redemption period.
If there is no winning bid the bank can take possession of the house after the redemption period.
The lending company will typically transfer the property to their REP (Real Estate Owned) division.
One of the important aspects when you buy foreclosures is to track the history of the sale of the house.
It can give you key information on what to bid for the home.
There are three key points at which you can bid for the home.
These are Pre Sale - Before the home is transferred to the trustee or auctioned, At the auction or Post Sale form the REO division of the bank.
These stages can be a key factor in determining your success.
It could influence where one can pick your point of entry to buy foreclosures.
A common misconception is that if a homeowner misses one payment the lender can institute foreclosure proceedings.
The whole foreclosure process is a lose lose situation for both the lender and the homeowner.
I will list the sequence of events in the foreclosure process below.
It is very important note that the homeowner has much more options in the early stages of the foreclosure process.
It is very important seek out advice in these early stages to understand what your options are.
For the investor, it is very important recognise that you are not limited to buying the house at the foreclosure auction.
I have tried to summarize the foreclosure process to four steps.
Four Stages At Which To Buy Foreclosures Initial Stages Homeowner misses some payments.
After repeated warning letters from the financial institution the matter can be transferred to an outside counsel after 3 months.
They will typically issue the homeowner with a formal notice of the foreclosure process Formal Foreclosure Process If the homeowner will not respond or come up with an unsatisfactory offer the attorney will proceed to advertise the foreclosure process in the legal or local newspaper.
Sheriffs Office The sheriff will inspect the house to examine whether the home has been abandoned or not.
In some states homeowner can have redemption rights for up to a year in which they can buy back property provided they pay the outstanding amount plus any unpaid interest, fees and penalties.
These redemption rights can change if the homeowner abandons the house.
Auction The financial institution submits the opening bid for the property.
This is typically the outstanding amount plus any fees,interest and penalties.
They may discount this amount to make it more inviting at auction.
Take Possession The highest bidder can take possession of the house after any redemption period.
If there is no winning bid the bank can take possession of the house after the redemption period.
The lending company will typically transfer the property to their REP (Real Estate Owned) division.
One of the important aspects when you buy foreclosures is to track the history of the sale of the house.
It can give you key information on what to bid for the home.
There are three key points at which you can bid for the home.
These are Pre Sale - Before the home is transferred to the trustee or auctioned, At the auction or Post Sale form the REO division of the bank.
These stages can be a key factor in determining your success.
SHARE
