Searching For Steals With Minnesota Foreclosures

Minnesota is well known for its farms and winter sports

. Located in the northern part of the United States, it butts against Canada and has a great deal of cold, winter weather. In these economic times Minnesota Foreclosures have been profound and many good bargains can be found.

Seeing the problems of people losing farms in 1986 the Homeowner-Lender Mediation Act was passed. This act, one of the first in the nation, requires mediation prior to foreclosure procedures. The owner must undergo financial counseling under this act before medication with the lender. The lender is then obligated to sit down with the owner and try to work out an amicable payment arrangement.

The owner's option is simply turning over the deed to the lender and walking off seems, at first glance ad good idea. However, that is not the end of the story. In reality the previous owner is still responsible for the full amount of the mortgage. This opens the possibility of wage, bank and other assets attachment or collection. Not a good idea.

Lenders, in general, simply shudder at the thought of assuming more foreclosure homes. Handling a foreclosure home is very expensive and involves a lot of legal and paper work. Many of the homes are in disrepair and needs extensive work. Most of these homes are sold "as-is" but the buyer should be wary of this type of sale.

Buying a greatly reduced home in Minnesota or anywhere else requires a great deal of research. One of the things to be researched is the foreclosure laws. In some states the original loan is never canceled out and the new owner can often find there are hidden liens or other encumbrances which are assumed when the papers are signed.

In this state a person can ask for a Truth in Housing Inspection Report. This covers an inspection by a licensed home inspector and lists any defects found. After viewing the document the prospective purchaser can then request an adjustment on the price to cover necessary repairs. Some counties require this document but others do not.

It is always a good idea to ask for a Transfer Disclosure Statement. In this case the seller must fill out a form which lists any known defects in the building. This is very helpful, especially if the property is rodent infected, had water leaks within the walls, etc. Even with this report there can be damages that are cosmetically covered or repairs have been made by an unlicensed person. Minnesota Foreclosures, like others, needs to be carefully examined before making any purchase.

It is very costly for the lender to go through foreclosure and they are not anxious to take on more property which does not produce an income. The majority of real estate agents are happy to be able to make a sale on these properties. At the present time there is a scam operation going on with lists being sent through the mail offering outstanding homes at a very low price. In reality, these homes are not for sale in many cases and, if falling for this scam, the prospective purchaser winds up depositing money and losing it. Before purchasing Minnesota Foreclosures it is important to know who is handling your purchase offers.

by: Renee Whitaker

POST COMMENT

Help With Foreclosure - Understand The Process More REO Listings Update: REO Foreclosures Set Third Record In Last Five Months How to Stop Foreclosure - Act Immediately A Guide On How To Invest Your Foreclosure Property Moratorium On Foreclosures Clamped Down To Ease Flood Related Problems Santa Ana Foreclosures Are Selling At A Huge Discount Va Foreclosure Listings Where To Find The Best Deals ForeclosureGate Foreclosure May Be An Opportunity For You Foreclosure Protection Why Searching Foreclosures By State May Mean Success Sarasota Foreclosures - Will You Cut It? St Charles Foreclosure