What is a Foreclosure
Foreclosure is the stage of default in a loan where the lender begins a process that allows them to recover the amount owed on an unpaid loan. The lender files a public notice called a Notice of Default after a series if delinquencies with the borrower. This process allows the lender to recover the loss by selling or taking ownership of the property (known as repossession). During this process, the property goes into Pre-Foreclosure which allows the borrower a chance to either pay off the balance owed or sell the home.
There are three opportunities for a buyer to find great deals on homes during the foreclosure process:
Buying a property in pre-foreclosure involves approaching the owner and offering to buy the property outright. There are great advantages for the homeowner since this process allows the owner to walk away with something to show for any equity in the property and to avoid further damage on his or her credit history. The buyer can research the title and condition of the property and can generally get a good buy of 25-40 percent below market value in many cases.
If the bank takes ownership of the property, the lender will usually want to re-sell the property to recover the unpaid loan amount. The lender then assume responsibility and clear the title and perform needed maintenance in order to market the property for a quick sale. This is typically a good deal all around for both parties since the property is often researched and repaired in some fashion (in some cases the property can be in perfect condition) – adding a lower risk for the buyer and a quick sale for the lender. The deals are generally even better at this stage for the buyer.
Many times if the loan does not get reinstated, the lender typically puts the house up for sale on public auction to recuperate the default amount. The negatives are that Buyers often are required to pay in cash at the auction and may not have much time to research the title and condition of the property beforehand. Properties sold at Auction are in “as Is” condition so you must be prepared financially for what comes your way either legally through the title or through condition issues of the house itself depending on the situation.
Looking for great deals on foreclosures?
One of the best ways to learn and obtain a great deal in foreclosure properties is to consult a foreclosure specialist in your market. Crystal McCall has partnered with Realty Trac and is able to assist you with all of your needs when searching for the best deal in this market. Crystal is a Foreclosure Specialist in Ocala ready to give you the best advice and to find you the best deal in the foreclosure market.
Crystal can send you great listings for foreclosed and pre-foreclosed homes in Marion County – including Ocala, The Villages, Summerfield, Belleview, Anthony, Dunnellon, Lady Lake and more. She can also give you advice so you can be an informed buyer while shopping.
Give Crystal a call today!
Keller Williams Cornerstone Realty
Serving Ocala-Marion County, Summerfield and The Villages
Toll Free: (800) 391-8354 Ext:0
Local: (352) 547-1077 The Villages: (352) 267-7846