Facts about Foreclosures
Yes, foreclosures are in nearly every zip code! Generally, sellers who are unable to make their mortgage payments may ultimately lose their homes through a foreclosure process. Lenders are not anxious to own these homes. They want the loan to be paid back instead. Sometimes circumstances occur that make a homeowner walk away from a property. There are usually better options than waiting for a foreclosure to take effect. These options can be reviewed directly with the lender. Lenders and owners both want to avoid a foreclosure.
Once a foreclosure happens, the home is put up for sale. Often a buyer planning to occupy the property will get an opportunity to bid before investors. These properties are sold through the MLS (Multiple Listing Service) and are also posted at the government websites like HUD and Freddie Mac. A strict process is followed as bids are offered for the property. Deadlines for bids are also posted.
Homes that are in foreclosure are normally sold "AS IS." This means that the buyer takes on the risk of the home's condition. These homes are sometimes marketed at prices below market, but also reflect the amount owed on the property. Buyers always ask "Isn't it cheaper to buy a foreclosed home?" This is not a yes or no response because each home is unique and all the variables must be reviewed before deciding if the foreclosed home is the best deal.
Once a foreclosure happens, the home is put up for sale. Often a buyer planning to occupy the property will get an opportunity to bid before investors. These properties are sold through the MLS (Multiple Listing Service) and are also posted at the government websites like HUD and Freddie Mac. A strict process is followed as bids are offered for the property. Deadlines for bids are also posted.
Homes that are in foreclosure are normally sold "AS IS." This means that the buyer takes on the risk of the home's condition. These homes are sometimes marketed at prices below market, but also reflect the amount owed on the property. Buyers always ask "Isn't it cheaper to buy a foreclosed home?" This is not a yes or no response because each home is unique and all the variables must be reviewed before deciding if the foreclosed home is the best deal.