Specific Questions Regarding Foreclosures

What is a foreclosure home?

Foreclosure homes are properties that are foreclosed by a lender. Foreclosure is a legal process that allows the lender to repossess (take over) a home in order to recover the loan that a borrower was not capable of paying. Primary causes for property foreclosures may be any of the following: death, divorce, unemployment, drug/alcohol addictions, mental problems, local economic conditions, and/or serious illness in the family. When the borrower does not pay a mortgage payment that is due, the lender has the right to file a judicial lawsuit and/or able to record a notice of default.

When properties are below market value, foreclosure homes are most beneficial to investors as well as new homebuyers. Foreclosure homes can usually be purchased 10% to 50% below market. These prices are possible when property owners are motivated to sell the properties. As a homebuyer, you can purchase foreclosure homes with instant equity. As an investor, you can purchase foreclosure homes as profitable properties that have built-in profit margins.

What profits are there from buying foreclosure homes?

Profits can be made when buying foreclosure homes because the properties have been purchased at discount prices. Whether you are a homeowner or an investor, you are guaranteed to make - even save money - when you buy foreclosure homes. As an investor, you can buy the property, and then re-sell it and reap from the profits. As a homeowner, you can purchase the house you have always wanted and still be able to save money.

How can I begin investing in foreclosure homes?

Become familiarized with the foreclosure process so that you may begin investing in foreclosure homes. Questions to keep in mind through this process may be of the following: Where can I find information on foreclosure homes? How do foreclosures occur? These are some questions to which the answers can be found on our ForeclosureRepos.com. Foreclosure investing is mainly involves buying, fixing and selling foreclosure homes in order to make a significant profit.

Using ForeclosureRepos.com makes it fast and easy to find foreclosure homes. Our database is nationwide, with a wide range of homes below market value that are available. On our foreclosure listing, you will find every type of foreclosure home located across the country.

What are the stages of foreclosure homes?

The three stages in which a property becomes foreclosed are the following: pre-foreclosure, auction property and real estate-owned [REO] property. The first stage of the foreclosure process is pre-foreclosure, which is the initial legal action that is taken by the lender. If the borrower does not resolve their debt during the first stage, the property then enters a second stage known as auction. This process opens opportunities to buyers, also known as the actual foreclosure sale auction. If the property cannot be sold at an auction, the property then is returned to the lender and is then known as a REO property.

Properties insured by a federal agency, such as HUD or Fannie Mae, or guaranteed by the Department of Veterans Affairs [VA] can be found in the fourth stage. When these properties are returned to the lenders, the agencies then reimburse the lenders and take complete rights of the properties. After this, preparations to sell the properties to the public are made by the agency.

How do lenders foreclose on property owners?

Procedures usually vary in each state, the first step is to file a judicial lawsuit or record a notice of default. The lender usually takes this step. During the reinstatement period, the homeowner can resolve the problem by selling or refinancing the property. This process can be as short as 21 days, in a sate such as Texas or as long as 6 to 12 months in some other states.

Are real estate brokers necessary when purchasing foreclosure homes?

Real estate brokers are not necessary when purchasing a foreclosure property. Before the property is submitted into an auction, foreclosure homes can be purchased directly from the homeowner. Foreclosure homes can also be purchased at auctions through auctioneers or foreclosure attorneys at the public auction, or through lenders after they have repossessed the property from auctions. The condition of the property does not really make a difference. You can purchase foreclosure homes with or without a real estate broker.

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