Foreclosure Learning Center
Deciding to invest in foreclosures is an important step, or maybe the property for you is a foreclosure. Regardless, take the time to prepare yourself for the process of purchasing a property in foreclosure. It is important to learn the risks and rewards associated with the foreclosure property market. We have created this Learning Page to give you brief descriptions of what you can expect.
- Understanding Foreclosures
- Foreclosure Homes: Dos and Don'ts
- Foreclosed Homes: What Are They?
- Understand Government Foreclosures
- How Do I Invest in VA Homes?
- Bank Foreclosures Explained
- What Are Repo Homes?
- Real Estate Foreclosure
- Our foreclosure listings service
Foreclosure occurs when a homeowner defaults on his payments to the lender of the property. The lender, the homeowner and the prospective buyer must be aware of what stage of foreclosure the property is in to determine the best and most cost effective way to get the house out of foreclosure.
Do your research when considering a home in foreclosure. Be certain to get all available information such as photo's, detailed descriptions, an inspection if possible and seller contact information. Do Not purchase a foreclosure home by getting caught up in the moment in a bidding war, you may waste all the built in equity which made the property so attractive.
Foreclosed Homes are Homes that payments to the lender are in default, the lender was unable to sell the home in a preforeclosure auction and the homeowner was unable to refinance the home or sell it to a buyer. A foreclosed home has had the owners evicted and is the responsibility of the lender to maintain and/or sell.
Government Foreclosures are homes that the lender is the United States Government. These homes have been purchased using a HUD (Housing and Urban Development) or VA loan, and the payments are now in arrears. The government, being the lender has taken over the possession of the property and is now attempting to resell it.
If a home in foreclosure is a VA home, it is available for purchase by anyone. The first rule of thumb is to get prequalified for a loan so that if a VA home is available, you are certain if you can afford it. VA homes are generally a good investment as many times they are sold well below market value.
Bank foreclosures are properties that have completed the foreclosure process due to non-payment of the mortgage by the homeowner. The bank and the homeowner have not come to terms nor has the homeowner made restitution for the monies owed and the property has been returned to the bank. The property is on the market for sale to the general population. These properties are commonly referred to as Bank-Owned Properties or REO.
Repo homes are also referred to as a foreclosure or a REO (bank owned property). These homes are in foreclosure due to the failure of the homeowner to make restitution on the mortgage note. Many Repo homes are sold in auctions or in foreclosure sales below market value to allow the lender to recoup any monies owing to them.
Real Estate Foreclosures are any type of property, whether it be land, commercial or residential wherein the property owner had failed to make payments on the mortgage. The properties have now reverted back to the lender who is attempting to resell them to any type of real estate investor. Real Estate Foreclosures are a smart way to get a property for below market value.
A good foreclosure listing service provides up to the minute foreclosure listings, property details, photos when available as well as seller contact. http://www.foreclosurelistingsnationwide.com/ does exactly that and brings to you, the real estate investor, all pertinent information on any foreclosure property in the country.
