subject: Rules Governing Corpus Christi Foreclosed Homes [print this page] Rules Governing Corpus Christi Foreclosed Homes
Part of the success in buying Corpus Christi foreclosed homes come from learning the ins and outs of the business especially the rules that guide the process of foreclosure. Any good investor should educate themselves on these rules as well as the variables that can affect their purchase.
The state of Texas recognizes both judicial and non-judicial foreclosures that have a separate and distinct process. Non-judicial foreclosure outnumbers judicial ones when it comes to Corpus Christi foreclosed homes. Buyers can purchase a foreclosure as it undergoes various stages namely, pre-foreclosure, foreclosure, home auctions and bank foreclosures.
Pre-Foreclosure and Short Sales
A notice of foreclosure sent to a home owner who has fallen behind on his mortgage obligation is the first step of in the pre-foreclosure process. The first notice urges the home owner to settle their obligations within 30 days. At the end of the period, a second notice is sent informing the home owner that the foreclosure process has begun. The next notice a home owner will receive is a notice of sale. This signifies that the lender intends to put up the home for sale to cover their losses from the unpaid mortgage.
At any point during the pre-foreclosure a home owner can opt to request for a short sale where they will attempt to sell of their home for a value that is lower than the debt still owed. This is particularly advantageous to would-be buyers as banks usually approve this request and buyers are assured that they are buying a property that is well below its market value. Home owners also gain from this type of sale as they are saved from the stigma of a foreclosure record on their credit score.
If the home owner does not want to go through a short sale, their home will end up in the auction block and be sold to the highest bidder. If Corpus Christi foreclosed homes do not get sold in this manner it becomes the official property of the lending company. These homes are then called real estate owned and are sold through licensed realtors handpicked by the bank.
