What Are The Types Of Foreclosure Sales In The Market?
Whether it is a bank or government foreclosure these properties offered at foreclosure
sales can be as low as 30 to 40 percent less their real market value. There are a handful of important details a buyer has to know to improve their potential to save money on their purchase. With some basic understanding of foreclosure law, the foreclosure process and the requirements that need to be met, buyers can see their way through to a sweet foreclosures deal.
Which Is Well Suited for You?
The main types of foreclosure sales are pre-foreclosures, home auctions, and bank foreclosures. A property is considered to be in pre-foreclosure after a notice of foreclosure is served to the home owner. A buyer would be in a good position to help out both the home owner and the lender in a pre-foreclosure sale. They will take over the mortgage, release the previous owner from their debt and the lender would just be too happy to deal with someone who is in a better financial situation.
Foreclosure sales at home auctions have three types. There is the absolute auction where the home is given to the highest bidder. The minimum bid auction happens when the auctioneer only accepts bids that are above a minimum price set before the auction. A reserve foreclosure auction is when the seller has the option to consider the highest bid for a fixed period of time.
The last type of foreclosure sales are bank foreclosures, which happen when the borrower fails to pay off their mortgage for three consecutive months. The lender, usually a bank has the legal right to collect both the entire unpaid balance from the borrower. There are some perks to buying bank foreclosures, best of which is that banks will ensure that the title is clear. Banks will also take care of clearing up all taxes, liens and other obligations on the property and they will also take care of the eviction process.