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Loading ...Acquiring a distressed property has three ways, depending where it is in the foreclosure process. This process involves three stages namely: pre-foreclosure, foreclosure, and post-foreclosure.
* Pre-Foreclosure Stage
In this stage, both the investors and the troubled homeowners are benefited. Pre-foreclosure prevents further debt of the homeowner and allows a more favorable price that is agreed upon by both parties. The best people to contact in locating a property are any of the following: real estate agents, lawyers, accountants, business partners, and friends.
* Foreclosure Stage
In locating a foreclosed property on this stage, it is best to go to the office of the County Clerk. It is where default notices and pending foreclosure sales are. There is also an option of subscribing to a list for advance notices. Moreover, title insurance companies can give assistance by providing some information in exchange for the expected future business.
The foreclosure process varies in every state. States either use judicial or non-judicial foreclosure forms. Judicial foreclosures concern mortgages, plus completion takes longer. Non-judicial foreclosures pertain to trust deeds wherein a third party or a trustee takes charge of the whole process within two to four months, just after a homeowner has stopped paying or has already defaulted.
After the property has undergone a judicial or non-judicial process, it is ready for auction.
* Post-Foreclosure
This is the stage when the property has already been fully taken control of by the lender. The property is then a lender’s REO, or is owned by the investor or the new owner who won the auction.
More REOs means higher overhead costs so lenders are more open to negotiations. If it is a private investor who has got the property, negotiating offers either alone or with the assistance of an agent may do.
The key to success in the foreclosed home buying and selling business is choosing the right stage to step in the foreclosure process.
