subject: Investments Decisions About Real Estate Foreclosure [print this page] Individual Anguish and National Catastrophe
A real estate foreclosure occurs owing to the owners continuing lapse in repaying his periodic loan premiums. The lender then seizes the home, intending to auction it to regain the pending mortgage loan amount. The lender could variously be a bank, Sheriff, VA, HUD, Fannie Mae or Freddie Mac. A foreclosure filing invariably causes considerable misery to the dispossessed homeowners.
The individual torment at the loss of a house ultimately snowballs into a national predicament with global ramifications, if the malaise is compounded manifold. This is what the ongoing mortgage crisis in the US illustrates graphically. The micro mortgage error has grown into a macro phenomenon that has warranted federal measures worth billions of dollars seeking to shore up the housing sector.
Buying Foreclosed Houses: Different Stages
A property foreclosure also signifies a rare chance for an aspiring homebuyer to pick up a splendid house at a terrific discount. The foreclosed homes are usually listed at prices that are between 10 percent and 50 percent less than the prevailing market prices. Besides, the reputed auctioning agencies evoke the buyers trust. The auction procedures are also smooth and just. The foreclosed houses involve clear titles and proper documentation. All these factors serve to draw buyers to the foreclosure auctions in huge numbers.
You can attempt to buy a foreclosed house in at least the following three different stages. The first is the pre-foreclosure stage or the time that an owner gets a notice of default from the lender. Having learnt of the default notice from the newspaper, you may contact the owner and try to strike a profitable deal. The second stage is the actual auction of the property, where you can pit your bidding skills {and resources} against those of the other interested buyers. The final stage is when a home fails to get bought at the auction. You may subsequently approach the seller for a more amenable and lucrative settlement.
The foreclosure auctions represent a rare chance for astute buyers to acquire magnificent properties as well as to make an investment in real estate foreclosure that is likely to reap them rich dividends in due course of time.
