subject: Purchase Foreclosed Property At Profitable Price [print this page] Foreclosures are on the rise in the U.SForeclosures are on the rise in the U.S. and the same has led to decreasing property prices in the real estate market. The foreclosed properties are put for auction by banks and government authorities for recovery of their outstanding debt which is paid by the homeowner. The main aim of foreclosure is recovery of debt and no profit motto is attached which makes the property prices really cheap.
Foreclosure process in the U.S.
The foreclosed properties sale is carried by most banks and government organizations through public auction, but direct sale is also possible in some cases. The banks start the foreclosure process once the borrower makes defaults on the loan repayment and after repeated notice of default the borrower is not able to pay the loan back. The bank exercises the mortgage right mentioned in the loan agreement and seizes the property after some grace period given to the borrower. The grace period is given for redemption and the borrower can repay the loan and reinstate the property rights. In case the borrower fails to do so, the lender renders the property as a foreclosed property and either sells it in an auction sale or repossesses the property to be sold later.
Government Foreclosures
Foreclosed Houses - The process of foreclosed properties by government authorities is similar to banks foreclosures in the cases where government authorities act as lenders. Several government authorities act as lenders to housing loans including FHA, HUD, IRS and FDIC. These organizations function in mostly the same way a bank does after the borrower makes a default on the loan repayments. The mortgage of the property after default is termed as foreclosed properties. These organizations opt for the auction route to sell the property for recovering the unpaid loan amount. The auction starts from the outstanding loan amount which is termed as the base price. This price is much less than the actual market price of the property and the buyers benefit by investing in this great opportunity.
Tax Foreclosures
Besides these organizations, Tax foreclosed properties are also on the rise and arise due to the unpaid property tax by the homeowners. The tax authorities seize the property and render it foreclosed properties for sale. The information by tax authorities like other organizations is published on the internet for auction on a specified date. The buyers are required to appear as bidders and the highest bidder is awarded the ownership of the property.
Foreclosed properties are great investment opportunities for most buyers and real estate investors but the same should be done by taking some precautions. The buyers should check for the condition of the property before purchasing and review whether the property requires some repair work to move in. The buyers can request the lenders to get the repair work done which shall further save costs for the buyer. The buyers should also check for outstanding loans on the property which shall be transferred to them once they become owners. Once these things are checked the buyer can move ahead with the purchase process.
Online Availability for Foreclosed Properties
Most websites feature listings for foreclosed properties and the same can be checked online easily and compared in regard to price and condition. The websites also display the price and picture of the property which makes it easy for the buyer to take a decision. Almost all states in the U.S. have foreclosed properties which can be searched easily on the net. By searching for foreclosed properties and buying the best among them one can save huge money.
