Knowing Foreclosure Home
Foreclosure home for sale happens in 3 stages: pre-foreclosure, auction and real estate-owned (REO) property. Within these 3 stages, houses are in discounted price. With that, the trading of foreclosure home can bring great deals to homebuyers and investors.
The initial stage will be pre-foreclosure. This is the first legal action taken by the lender where the home owner is given a period to respond to the lender whether he manage to re-pay the debts or getting a buyer.Trading in this initial stage is the best as we, the buyers or investors can directly deal with the owner to get a better price. Mean while, for owners who successfully sell their house in this stage, it leave no bad marks in their credit history. Indirectly, we are helping them.
The property enters the second stage which is auction sale if the owner failed to settle the debts within the certain period. The particular house will be opened for sale by being bided in the country court house and the highest bid wins the deal. Here, we will need to compete with professional investors or even bankers. In the auction, foreclosure homes for sale are below retailed price. It is therefore a great fortune for investors who buy and re-sell the property here.
If it happens to be no buyers during auction, the property will be taken back by the lender (third stage). Until then, the property is directly for sale by lender/bankĘC Real Estate Owned (REO). There are advantages to purchase the house from the lender/banks for example there will be lesser complicated procedure, lesser red-tape and perhaps no tenants to evict.
Read more on How To Buy Foreclosure to find out how you can get great bargains.