Should Buyers Look At Georgia Foreclosures?

If you have plans to purchase your dream home standing on the courthouse steps in a foreclosure auction, then you might want to rethink those plans

. While there are bargains to be had in Georgia foreclosures, purchase of a foreclosed property in the courthouse auction is often not the best way. Here you will learn about the dangers of purchasing foreclosed properties in this way and a better way to buy those same properties with the savings brought through foreclosure.

When you purchase the property at the auction, there is no chance for inspection of the home. Properties are sold sight unseen. From the legal notice, you may have had an opportunity to view the property, but you will not be able to go into the home or have the normal inspections that go with a home purchase.

One thing does protect most buyers from rushing out to an auction for the property is that properties bought at a foreclosure auction must be paid for with cash or other certified funds. There is no chance of financing the home at the purchase.

If you buy property at a sheriff's sale, it will not have title insurance. Thus, there is no guarantee that the property is free of liens or even a second mortgage. These debts against the property will have to be satisfied and you are now responsible for them. If there is a second mortgage, you could have to pay it off or see your new property repossessed. In addition, the title report that would have came with the insurance would have told you if there were easements that would prevent you from using the property in the way that you want.

There are some good ways to purchase property that has been foreclosed. If you can catch the property in the pre-foreclosure sale, you may get the best bargain, but there are also bargains to be found through bank owned properties.

The best bargains in the pre-foreclosure market are when the homeowner owes less than the current market value of the home. This allows him to sell a home where he has been sent a notice of default before final foreclosure takes place. Homeowners owing less than the market value can use the money you pay for the home to pay off the mortgage and may be able to regain a part of the equity they have in the home. In addition, they save a foreclosure going on their credit record. You are dealing with the property owner and are able to have all the protection of a normal sale of the property.

After a housing bubble breaks, homeowners may be left owing more on a home than the current market value. At times a bank will approve a short sale. In the short sale, the lending institution approves selling of the home for less than is owed on the mortgage in order to avoid the cost of foreclosure. With the short sale, you have the protection of title insurance and can purchase the home with a loan.

If the home did not sell at the courthouse auction, the bank then takes possession of the home and lists it for sale. At this time, the bank will normally list the home for sale at near the market price. They have had to go through the expense of foreclosure and want to get as much money back as possible. However, when banks have several repossessed homes on their books, they are often willing to make a deal in order to clear the bad loans. As a home buyer, you can make an offer on a bank owned home that is less than the asking price, and in many cases the bank may accept your offer or issue a counter offer to sell the home.

Georgia Foreclosures offer many bargains; however, only experienced buyers should attempt the sheriff's sale.

by: Jack Bennington

POST COMMENT

High Foreclosure Rates Option #1 To Avoid Foreclosure Forbearance Act Promptly to Stop Foreclosure The Differences between Foreclosure and a Short Sale Your Options To Avoid Foreclosure Foreclosures In California Offer Exciting Options Need To Stop Foreclosure Fast? Have You Been Served A Foreclosure Notice? Short Sale Versus Foreclosure: Which Option Is Better For Me? A Proof of Income is Needed for Preventing Foreclosure Foreclosure Victims Can Also Help Foreclosure Victims Short Sale Is The Best Solution To Avoid Foreclosure Coming Up With Ways To Prevent California Foreclosures From Increasing Drastically