Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Ruth asks…

foreclosed homes?

Can somebody explain foreclosed homes to me? Why are they cheaper than normal homes? And why doesn’t everybody buy them if they are?

Your Questions About Foreclosures

The Expert answers:

Foreclosed homes fall into several categories so to group them all together is confusing. The foreclosure process varies from state to state but it usually involves a notice of default, filing of the foreclosure and the sheriff sale. The foreclosed homeowner may or may not have the right to “redeem” (pay off the debt and repurchase the property) up to and even after the sheriff sale.

If you purchase at a sheriff sale, you will usually not have the right to inspect the property. That could mean many defects. As stated above, people who cannot pay the mortgage often damage the homes and rarely can afford proper maintenance. Some people feel they are entitled to remove fixtures which they have put into the home upon foreclosure so you will see homes with cabinets, tubs, toilets etc. Removed. Although the foreclosure process should clear any liens on the property (except for taxes and municipal liens), there are often mistakes made in the process and you will later have to pay to have liens cleared. You are not receiving a warranty of title in a sheriff’s deed. You will also generally need a significant portion of the sale price (20-50%) in cash on the day of sale (again, this varies from state to state).

At the sheriff sale the bank will bid its interest in the property. This is the amount of the loan plus all outstanding expenses. This is often more than the property is worth. If the bank takes the property then it is disposed of in one of several ways. First, if the loan is government insured, then the property is returned to the government agency insuring it. HUD is the largest such agency but there are others such as VA, USDA, Fannie Mae and Freddie Mac (the latter two are quasi governmental but that is beyond the scope of this answer) that insure large numbers of single family home loans also. There is also private mortgage insurance which will pay the bank for a percentage of their loss.

If the government or the bank market the property subsequent to sale, the process is about the same. The property will be listed for sale as-is in the local multiple listing service through a realtor. At that point you would have the opportunity to inspect the property inside and out and also to make your offer subject to certain inspections. You can also get a loan on many foreclosures, provided they are not in such bad shape that no lender would consider them sufficient collateral. If that is the case, there are rehabilitation loans available but that is a much more difficult process.

If you are truly interested in this, I would suggest you take a look at the sheriff sale process in your area. Also, check your local paper for sheriff sales and note the amounts for which the properties are sold at sale. In some areas you can see all sheriff sales online at http://www.publicnoticeads.com If your area is not included in that, then check your local newspaper online and do a search for sheriff sale. Next check the hud website for your state. You can learn more about buying a hud home and what the prices are at: http://www.hud.gov/offices/hsg/sfh/reo/reobuyfaq.cfm

If you would like to check a few of the bank websites to see how and for how much they market their properties, check out IndyMac Bank and Bank of America online. They both list their properties online. I think you will find that the properties are priced comptetively given the conditions.

Finally, you should understand that appliances, paint and landscaping alone (all of which 95% of foreclosures need) can cost thousands. This alone mandates a discount from the pricing of other homes.

Good luck, I hope this helps.

Your Questions About Foreclosures

Susan asks…

foreclosed homes?

Where can I go on the website and find foreclosed homes without having to pay before they give me information. Has anyone ever tried one of htese websites and was it a scam?

Your Questions About Foreclosures

The Expert answers:

FreddieMac Homes http://www.homesteps.com/hm01_1featurese…

HUD Homes http://www.hud.gov/homes/index.cfm

VA & Other Homes http://www.ocwen.com/reo/residential/res…

Most are listed with real estate offices anymore & any agent could pull them for you.

22 Years Washington State Real Estate Experience ~ Associate Broker since 1991

Your Questions About Foreclosures

Sharon asks…

Foreclosed Homes?

Can anyone tell me good and free websites, which you can search Foreclosed Homes on? Thanks.

Your Questions About Foreclosures

The Expert answers:

Banks list their homes thru licensed Realtors. The best way for you to find an REO property is to contact a Realtor who is experienced in acquiring these types of properties. Keep in mind, the Listing Office represents the Seller…in this case that would be the bank. They are obligated to get the best price FOR THE SELLER. Find yourself a good BUYER’S agent. By ALL means, hire a professional inspector to make sure you are not buying an expensive problem!

If you are looking for a good real estate deal, REO’s are not always the best way to go, at least that would be true in today’s market. Most of them are over-priced for the condition they are in, many are not financeable due to defects. That goes double for HUD-owned properties.

Your Questions About Foreclosures

Sandy asks…

foreclosed homes?

can someone please explain this? and is it bad to buy foreclosed homes?

Your Questions About Foreclosures

The Expert answers:

No not at all. Foreclosed homes are simply homes that the lending intuitions are trying to sell themselves after having had a default on the loan they wrote.

Usually you can expect to find a lower price on a foreclosed home as compared to similar properties as the lender is looking to only satisfy the debt, but in today’s market this won’t be the best deal.

Today you want to look for short sales, which means the bank or banks have agreed to let the property be sold for less than the loan value.

Talk to an agent who can give you some great advice and show you the best values in your market.

Your Questions About Foreclosures

Donald asks…

foreclosed homes?

where online can i view foreclosed homes for free?

Your Questions About Foreclosures

The Expert answers:

OCWEN, HomeSteps, FannieMae & HUD all have their foreclosures on their websites. They are all listed with real estate agents so it’s not any secret squirrel stuff.

Powered by Yahoo! Answers

Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures