Foreclosure happens when the homeowner is unable to make the mortgage payments. When this happens the bank or the mortgage lender will usually foreclose the property and the ownership of the property will return back to them. In most cases, the properties or the homes are sold at foreclosure auctions. If the homes or properties remain unsold at the foreclosure auctions, then the bank or the mortgage lender will repossess the property. Such homes are then known as Reo or repossessed properties.
Before foreclosure happens, there are several properties that are also listed in the pre foreclosure listings. Investors can also buy homes that are listed in the pre foreclosure stage. This is known as a “short sale”. Before the homes or the properties have been foreclosed, the homeowner is given ample time limit. During this time, the homeowner would need to make the payment on the mortgage loan. In this case, they would need to pay all the overdue payments plus other charges. If the homeowner is able to this, then the loan is reinstated or else the process of foreclosure will continue.
In other cases, in the pre foreclosure stage, if the property isn’t sold during the short sale, then the property can also be taken over by the lender in a “deed in lieu of foreclosure”. This isn’t foreclosure technically, even though the homeowner will lose their home as the owner gets a status of a fully paid up mortgage loan. Even though these options will lower the credit score to a certain extent, these options aren’t as damaging as a foreclosure on the credit score.
Websites that offer foreclosure listings should be utilized by those investors that are thinking of investing in such properties. Even first time buyers can look at the option of purchasing foreclosed homes as they are cheaper than newer properties. Banks also have foreclosure listings, but often this can be an extremely time-consuming process. The online web listings that show the properties that are in pre foreclosure stage or those that have already been foreclosed are available quite easily. The foreclosures are listed by state, county and city. This makes it easier for the investors to use the listing and get the properties that they are interested in. The listings are also accompanied by photos and this gives a better picture of the property. Along with the picture, amenities and facilities available in the house as well as the neighborhood are also provided.
This has many benefits for the investors that are looking for the foreclosed properties. Paid membership for these listings helps the investors in getting access to properties before others can view the properties. In this way members can move faster than others and make a profitable deal on the foreclosed properties. This can be crucial for investors that are looking for buying the property, making repairs and then flipping the properties for getting a good decent profit.
Julie Thompson, has been working on ForeclosureRepos.com studying the foreclosures market, helping buyers on the finer points of Akron foreclosure homes.