Buy US Real Estate – The Different Periods in a Foreclosure Process
29 Jan 2010 • 07:10 AM • BusinessThere are 3 identifiable periods in a foreclosure process that is important to be aware of when you intend to take advantage of the bargain opportunities that a foreclosured home offers. Below are detailed the 3 different periods for your enlightenment.
1. The Pre-foreclosure Period starts when an owner whose property is to be foreclosed will receive a foreclosure notice. After about 2-4 months(depending on the lending instituation and the laws of the state the property is in), the property will be forfeited and transferred ownership to the lender, given that the borrower was unable to pay off his or her debt by end of the pre-foreclosure period. Pre-foreclosure periods take longer in states that practice judicial foreclosure since the court proceedings make it a much lengthier process. The most ideal time to buy us real estate. The borrower will be wise to sell off the property he has that is being foreclosed so that he would avoid a bad mark on his credit record and would actually have some cash for himself to work with. During this time, you could get discounts for as much as 30-40% off the property’s actual market value. Also, you’ll have adequate time to check the property’s condition and the title.
2. If the property has been forfeited, you could expect an auction for the property to take place. The problem with this is that you most likely will not have the time to inspect the property for its condition and verify if the title is cleared of any encumbrances. This may present you with the best bargain though and will save you from having to deal with the owners that could be indecisive.
3. At times, the lender will end up having ownership of the property. And most likely, they will resell the property. These properties will be in great condition and titles will be cleared of any obligations and fees. The properties will not be sold at a discount price though.
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