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WIth no end in sight to the credit crisis of 2007, those with a little cash stored away can still buy homes at exceptional prices. Over the last four years, home prices have declined from their original listing highs by as much as 60% in some cases. The question that arises for the novice investor or new home buyer is how to go about finding the right buy for their purpose. In our discussion, we'll explore the types of foreclosures, the process involved when a bank perfects its foreclosure, and what resources are available to buyers to help them assimilate a vast amount of information regarding foreclosures. Put simply a foreclosure is a lender's method of recouping its loan along with accrued interest and penalties. A foreclosure results when a homeowner (borrower) falls behind on their mortgage following the expiration of their stated "grace period". The bank then takes a legal course of action to remove the existing borrower. This is the beginning the foreclosure process. During the proceedings, the lender can legally have the homeowner removed thereby taking clean title to the home. Clean title is the critical element in any foreclosure. This is what we mean by "clean title": during the foreclosure process, any lien (legal right to monetary consideration) on the home is erased or wiped out. Liens can take many forms including the original mortgage, home equity loans, or judgements from say a contractor or a home owner's association. Therefore, if you are buying a true foreclosure, you will be given clean title to the home. A great deal of attention lately has also been placed on what are called "short-sales." Short sales are essentially a quick and efficient way for a troubled borrower to turn a home back to the bank in what will hopefully be a cheaper transition for both parties. However, beware that, in most cases, the lender completes the short-sale in a "short manner", thus, the lender will likely sell the home in a clearly stated "as-is" condition. Short-sales can be fast, fun and profitable for investors as long as the investor takes into consideration that the customary ways that a foreclosure is handled may not always apply to short-sales. With so many distressed properties on the market, how can an investor or home buyer get started.? Obviously a good real estate agent is an option; however, a prospective buyer can also turn to services that specialize in tracking foreclosures, short-sales, and government owned assets (FHA or USDA). The great thing about a specialized foreclosure service is that you can begin your search at any time or any day. After locating your property, you can then bring in professional help to oversee the transaction. Foreclosure Listings Please Visit Our Online Mall
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