What is a foreclosure?
"Foreclosure" is a common term used to describe a trustee's sale proceeding- the correct terminology to use when describing the procedure for enforcing a lender's rights once an obligation secured by a Deed Of Trust (or similar instrument) is in default.
What are the advantages of buying foreclosure properties at auctions?
There are many great advantages of buying foreclosure properties at auctions. The greatest is that money will be saved. Investors and homebuyers can purchase properties well below market value, which can result in a tremendous return on investment.
How can I buy pre-foreclosure properties?
During the pre-foreclosure stage, the property still belongs to the borrower. You can contact the borrower to get the physical and financial details for the property, and to view the property. Once you make the decision to buy the property, you must submit a written contract directly to the borrower for the purchase, and contact the attorney to stop the foreclosure process.
What should I be aware of when buying pre-foreclosure properties?
There are two issues that you should be aware of: All of the debts on a pre-foreclosure property will remain on the property until it is sold. All the debts must be paid prior to purchasing the property. Ensure you are aware of who actually holds the title to the property and that they have agreed to the sale, and that they have agreed to sign the contract of sale.
What is a foreclosure auction?
A foreclosure auction is a public sale in which properties are sold to the highest bidder. Investors and homebuyers are welcome to bid at auctions.
How much money do I need to buy properties at auctions?
The initial payment required usually depends on the seller and how much the property is worth. It could be as little as $500.00, or deposit of 10% of your offer amount required by some banks. The deposit must be paid immediately after the auction; and the balance is due within 30 days (depending on the state).
