Looking for affordable real estate investments? Then, buying foreclosed properties would be a wise choice! But what is foreclosure? There would be a handful of people who are new to this term. Well, a foreclosure is a process in which the homeowner’s rights on the mortgaged property are terminated due to default in repayment.
There are two ways to own such a property. One is to buy the property from the borrower or owner during the pre-foreclosure period. Pre-foreclosure period is the grace period allowed for the borrower to settle the dues after he or she makes a default in payment. This period is different for different states. It is advantageous to both the buyer and the seller. While the seller can avoid a negative effect on his credit rating, the buyer will get the property at a bargain price. The seller can also save on the cost of taking possession by the lender or the cost of the auction. There is very little time left for the seller to negotiate for a higher price and this makes it easy for the buyer to bargain and snatch a good deal.
Another opportunity for the buyer is when the property is auctioned. The lender either takes possession of the property or put it up for auction to recover the loan. When the auction takes place the prospective buyer can bid for the property of his choice. In a situation like the current economic slowdown, there are plenty of such properties coming for auction. This allows plenty of choices and a bargain price for the buyer at the auction.
However, the legal procedures and requirements for buying foreclosed properties vary in the US and UK. In the United States, these legal formalities may differ from state to state and would include matters like judicial and non-judicial foreclosure, the right of redemption, timeline, security instruments, etc.
For both the above procedures, the buyer will need to have the foreclosure data on the property. That is where the foreclosed home listing comes in. There are several websites which provide complete data on homes in foreclosure and auction all over the country. The buyer can choose a few that suits his own criteria from the list.
From a reliable foreclosure homes list the buyer can get all the information required about the homes as regards the size of the property, number of bedrooms and bathrooms, list price, map and in most cases photographs of the property. After selecting some properties, it is better for the buyer to visit the property personally to find out how much it will cost for the repairs of the home. An inspection by a professional will be better. If the cost of repairs is very high, it is better to avoid it. Then, the prospective buyer must check the title deeds. Also, make sure that there are no other liabilities on the property. It is worth all the money that is paid as a subscription for a paid foreclosure home list.