margaret884

2020 2021 2022 2023 2024

You've probably heard a lot about foreclosed homes, and you have a thousand and one questions. If you are in California, you can reach out to California foreclosure attorneys to ask all the mind-boggling questions you have. In the meantime, let's delve into the different types of foreclosed homes.

Foreclosures can be classified into four different types:

Auction

This is not the first time you'll be hearing the term "auction." The chances are that you've bought one or two goods from auction sales. Real estate auction is commonplace in foreclosures. During an auction, a third party run a sale of homes that lenders have taken ownership of after the original owners didn't meet up their financial obligation. The prices during auction sales are lower than regular market prices. However, it may get too expensive if you have many persons bidding for it. What's more? This kind of sales requires buyers to have cash at hand.

If you are interested in auction sales, be wary of these risks:

• You may not have the opportunity to check the worth of the house in the market. This means that you may be buying the home at an exaggerated rate if you are not careful. Speak to an expert at California foreclosure attorneys for further advice.

• The house might have a lien on the title, mostly if the previous owner stopped paying property tax.

• You could spend a fortune on repairs.

Pre-foreclosure

Also known as a short sale, pre-foreclosure occurs when the homeowner still owns the property but knows it stands a chance of foreclosure. They quickly rush to find a buyer to avoid foreclosure. This kind of sale is an indirect form of foreclosure sales, but a borrower does it. This kind of sales is challenging because borrowers get permission to sell the house for less than what they owe on their mortgage. This sale aims to ensure that the price is low so that it is sold faster.



REO

REO is an acronym for real estate owned. The term denotes that the bank or lender owns the property. In this case, the bank has secured the home at an auction and resells it to regain the money owed. The bank hires the services of an expert real estate agent to help them sell the property.

Government-owned

Even the government has foreclosure properties. They are also similar to the properties owned by lenders and banks. Government agencies take over the home when the owners default on mortgage repayment.

If you have further questions, feel free to ask California foreclosure attorneys for clarification, so you don't make silly mistakes. It is better to ask too many questions and remain on track than keep quiet and invest wrongly.

2020-12-01 20:28:13, views: 208, Comments: 0