Foreclosure Property Info
BANK, HUD & VA FORECLOSURES INFO PAGE
Foreclosures may not be everyone's cup of tea, but for those of you looking for a potential investment property this may be for you. The motivation for buying a foreclosure property is different for everyone; some may look to rent, re-sell (flip) and/or live in for many years to come. If you decide to purchase this type of property, it's essential to speak with your tax accountant (for investors), mortgage lender and a knowledgeable Realtor w/foreclosure experience. The following Q & A below will help you become more familiar with these types of properties.
What is a foreclosure Property?
Putting it plain and simple...it's when the homeowner has not paid there mortgage bill (whether it be principal and/or interest) and the type of foreclosure will also depend on their loan type (bank i.e.-Conventional, Govt i.e.-FHA or VA); either way they can seize and sell the property.
What are the benefits to buying this type of property?
These properties tend to be listed for 10 - 25% below what other homes in the neighborhood are selling for. This percentage can certainly vary depending on the condition and location of each property. So before you make a move, be sure to have a good understanding of the work needed for repairs and potential market value.
Do these properties always need a lot of work?
These types of properties generally need at least some type of cosmetic work and sometimes (rarely) the bank will try to do some improvements before the home is listed for sale. In most cases, they will need to be remodeled or fully renovated.
I don't have money to fix up, can I still buy?
There are programs out there like the 203K that allow you to purchase the property and get money for repairs. It's a good idea to speak w/a mortgage lender who is familiar w/these types of loans and can educate you about the process. The bank, HUD and VA have been known to help w/Closing costs and give money for repairs (cases will vary).
Will I be able to Inspect the property before I buy?
Yes, you can see the property before putting a contract and will be given a chance to have a home, mold, termite, and radon inspection etc. Make sure to have this in writing on the contract of sale and remember that they are selling Strictly "AS-IS" in most cases. Depending on what you have in your contract; they will at times help repair minor to major items in select cases (every bank is different).
Where can I find these properties?
There are many sites that you can pay to get lists of these properties, but if you'd rather get a "FREE" daily/weekly update of these properties in your area, please click here and I'll be happy to do it for you. Please reference "foreclosures", in the comments box before clicking Request property info. You may also check out our *NEW* foreclosure search portion of the site by clicking here.
OUTLOOK FOR THE FORECLOSURE MARKET
The Real Estate market has flourished greatly from record low interest rates and swarms of buyers looking to own a piece of the American dream. Granted, things have slowed down greatly starting in 2006; the effects of a blistering seller's market of past will certainly yield a rise in homes going into foreclosure. This will most likely be the cause of ARM's, Interest only and any other creative financing that can potentially increase an already maxed out mortgage payment in the future. Please come back as we will be updating this page as much as possible!
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