If a Homeowner Defaults on a Mortgage, The Bank Will Foreclose or List the Home as a Short Sale!

How does one go about purchasing a Short Sale or Foreclosed property?  After a borrower falls behind, and the lender and the borrower are unable to reach a satisfactory solution, the lender will take steps to sell the property.  Following a notice of sale, a foreclosed property is listed for sale at auction.  Some lenders hold a public auction which can be held through a public sheriff’s sale or a private party sale.  The timing and process varies from state to state, and lender to lender.  If you want to buy this type of property, be aware they are sold “as is”, meaning without any warranties and without repairs.   Some lenders will also list the property For Sale with a real estate firm if it doesn’t sell at auction.

Some of the best bargains can be found at auction sales, however, you probably won’t have complete information and the properties can still be occupied, which means you may not get a look inside, much less bring your inspector.  Things can get awkward as you may have to evict the homeowner after purchase, which means you are facing a risk they will damage the property before leaving, if you purchase a property like this.  Additionally, it is difficult to determine if there are any old debts on the property.  You may be required to pay a lieu that a roofer placed on the property because he never got paid for the roof when it was installed.

When it comes to financing, public sales usually require cash payments, so you will need to have your financing in place well in advance of the auction, if you want to buy a foreclosed property.

For Information on Buying Short Sale Properties, go to my blog posting for July 30^th, 2009.

My web site for Foreclosures and Short Sales or any Home Sales in Jacksonville, Florida is http://www.FindaPlaceWithStyleNgrace.com.   Please enter your questions in the right blog entry box.

Tags: Jacksonville Beach Foreclosed Homes, Jacksonville Beach Foreclosures, Jacksonville Beach Foreclosures Properties, Jacksonville Beach Homes, Jacksonville Beach Short Sale Homes, Jacksonville Beach Short Sales

Posted on Wednesday, August 12th, 2009 at 4:55 pm and is filed under Bidding REO Properties, Condos, Foreclosure Property, Foreclosures, Homes for Sale, Housing Market, Luxury Homes, Property Investment, Questions and Answers, Real Estate Agent, Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.