|4 BASIC TYPES OF FORECLOSURE TRANSACTIONS
|There are 4 basic types of foreclosure transactions
depending on the steps in the foreclosure process.
1: Pre-Foreclosure (Before
At this point, the owner of the house is having difficulties
paying the monthly mortgage, and wants to sell the house quickly
before the actual foreclosure process gets started by the
bank/lender. For this type of transaction, buyer's agent will
negotiate directly with the owner of the house, so there is
a great possibility that the buyer can get a greatly discounted
sales price. We can do some research, and show this type of
foreclosure properties to you right away.
2: During Foreclosure
At this point, the owner of the house was unable to pay the
monthly mortgage, and the bank starts the foreclosure process
by scheduling a foreclosure sale. Usually this process takes
about 1 - 2 months. For this type of transaction, buyer's
agent will have to negotiate a deal with the attorney who
handles the foreclosure process, so the negotiation is likely
to take a lot longer than the regular home purchasing process.
3: At Foreclosure
At this point, a notice of sale is published, and the house
is put up on the foreclosure sale auction held at the county
courthouse on the first Tuesday of the month between 10:00
a.m. and 4:00 p.m. At the auction, hundreds of properties
gets sold at a very high speed. The winning bidder, if other
than the bank/lender which serviced the mortgage of the property,
is required to pay the full bid amount to the person conducting
the sale immediately following the sale. If no one bids on
the property, the lender will usually auction off the property.
Although this monthly foreclosure auction is open to public,
the majority of the bidders are foreclosure experts, brokers
and investors who deals specially with foreclosure real estate.
4: After Foreclosure
At the auction, it is very common that the foreclosure homes
are sold to the lender which serviced the mortgage of the
property. After the auction, the house will be put on the
market by the lender as a bank-owned property through an real
estate agent. We can do some research, and show this type
of foreclosure properties to you right away.
| For any of above types of foreclosure transaction,
it is the best to consult a professional real estate agent
with ample experience and expertise. We can help you find,
negotiate, and close on a foreclosure home and save you a
bunch! Call us for more information at (404) 257-4792