Jun. 19, 2008 - Chasing After Foreclosure Properties

Chasing After Foreclosure Properties

What is a foreclosure? A foreclosure occurs when a homeowner defaults on a mortgage with the lender. After the foreclosure sale, the lender then takes possession of the property and tries to sell it in order to recover as much of the value of the loan as possible.

Before you start your chase after foreclosures, homebuyers and investors must familiarize themselves with the process if you’re going to invest in foreclosures. The foreclosure process in each state differs. You need to be savvy and must educate yourself before you purchase a foreclosure property.

You can do this by searching over the Internet or you can research the topic at your local library. You also need to become familiar with the documents that might be used as evidence of a money debt against real estate: Trust Deeds, Mortgages, Security Deeds, Deeds for Debt, Contracts, and Land Contracts, among others.

In some states, they have redemption periods after the foreclosure sale. The property has been foreclosed upon by the bank, but depending upon the state the former owner has up to a year to make up all the back payments and costs and retain possession of the house, regardless of who is presently living there.

Some states have a non-judicial mortgage process for resolving the issue. Trust Deeds are widely used for these non-judicial foreclosures. Most banks prefer this type of foreclosure because it cuts down on fees and costs. When a mortgage case is taken to court, it usually takes a longer time to resolve.

Right now, with foreclosures at an all time high, there are many opportunities in purchasing a foreclosed property. Just make sure you educate yourself to the foreclosure process no matter what state you are purchasing the property.

Also note that when purchasing a foreclosure property, the homebuyer or investor cannot be picky about the condition of the home. Foreclosures are sold “as is” and most require some type of rehabilitation due to the lack of maintenance from the previous owner.

Despite the risks that might be involved, buying foreclosures is a great opportunity for the homebuyer or investor because properties can be purchase at a price lower than the current market value.

Searching for foreclosures can be an arduous and time consuming process, give me a call at 661.904.2188 or email homesbycharly@yahoo.com to request a list of foreclosure properties for your area. You can also go to www.homesbycharly.com and request the list online.