All About Foreclosures

 

About foreclosures

Foreclosure is a process in which a home becomes the absolute property of the lending institution/bank after the homeowner fails to make payments of the money due on the mortgage at the appointed time. This may be due to several reasons. unemployment, divorce, medical challenges, terms of the loan, sick of property management, and even death.

With the recent economic downturn and the bursting of the real estate bubble, foreclosures have been on the rise and have created a great buying opportunity. Speculative investment and overly risking lending practices have led to a dramatic rise and an even more dramatic fall in home prices and a historic buying opportunity for first time home buyers, investors, and those with good credit

 

How to Buy Foreclosures

Understanding how to take advantage of the foreclosure market requires a knowledge of how the process works. There are different ways to buy foreclosures with benefits and pitfalls at each step.

For an important discussion about the risks involved with each step of the process.

   Call Lori Cotter @ 413 348-9259

 

Opportunity 1: Short Sale

Foreclosure proceedings typically start with a formal demand for payment which is usually a letter issued from the lender. This letter of notice is referred to as a Notice of Default (NOD). The lender will typically issue this notice when the homeowner has been 3 months delinquent on the mortgage payments. During this time the home owner will attemp to "Short Sale" the property. This creates a great buying opportunity. 

I will provide you with a list of all short sales in your area.


 

Opportunity 2: Foreclosure Auctions

Once a home owner has failed to make payments within the legal time period, the bank begins the process of foreclosing on the property. One of the first foreclosure steps is to put the house up for auction. Please call for more information on this process.


 

Opportunity 3: Bank Owned Properties

Once a bank auction has failed to find a buyer, the property "reverts" to the bank and the bank now owns the property. At this point, the bank will put the property up for sale as a "bank owned property.

I will Provide you with a list of all bank owned properties in your area.