Frequently Asked Questions...
WHAT IS A FORECLOSURE?
A Foreclosure occurs when a homeowner misses his or her payments and defaults on the mortgage. Property in foreclosure is often referred to as distressed because the owner is in financial distress and is behind on his or her payments. The owners financial distress can be caused by a variety of unfortunate circumstances. This often results in a bargain buying opportunity for a well-informed homebuyer or investor, who can end up helping the homeowner avoid serious credit problems.
CAN I REALLY SAVE THAT MUCH MONEY?
Yes, you can.
Thousands of other people have purchased foreclosure and auction property at far below market value. United States Government studies indicate that foreclosure homes sell for an average of 22% less than ordinary home sales. Many were found at even greater savings. Additionally, the Journal of Real Estate Research and the University of Texas tested 2,500 foreclosure homes and found almost identical results.
This independent research should guide your decision on pursuing foreclosure properties and ultimately your dream home.
HOW DOES THE FORECLOSURE PROCESS OCCUR?
WHAT IS A PRE_FORECLOSURE?
Pre-foreclosure represents the first stage in the foreclosure process.
In this phase, the homeowner has missed at least one payment and is now considered delinquent on the loan. A pre-foreclosure can also be referred to as a NOD (notice of default) or Lis Pendens, which is a formal warning sent to the borrower on a loan regarding the delinquent payment(s).
WHAT IS AN REO PROPERTY?
REO stands for Real Estate Owned (by the Bank.) REO properties are another great opportunity to purchase foreclosures. The REO stage is the process after the auction, when the lender is either the successful bidder or there are no bids at all. In either case, the bank becomes the legal property owner and the property is considered a non-performing asset of the bank, which is a fancy way of saying the bank doesnt want to hold on to the property. This means a solid buying opportunity for you, the homebuyer. While buying property from the bank is the easiest way to purchase a foreclosure, the savings opportunities are typically less than buying a pre-foreclosure or auction property.
A foreclosure doesnt just happen overnight. A typical foreclosure timeline can extend over several months. Each stage of the foreclosure process offers different types of opportunities for the buyer. The three stages of the Foreclosure process are (1) Pre-Foreclosure (2) Foreclosure Sale/Auction and (3) REO or Real Estate Owned by the Bank. Our site offers information and listings for all three phases of the Foreclosure process.