How does the foreclosure process work for the potential buyer?

by oliver on September 30, 2010

Question:

How does the foreclosure process work for the potential buyer?

I’m potentially looking for a foreclosed property but I’m not quite sure how the complete process works. Any suggestions?

Answer:

If you are really interested in buying a foreclosed home, find one that is still at the early stages of pre-foreclosure. If you have selected a house and is convinced to buy it once and for all, keep track of the foreclosure process over the property. You must talk to a real estate agent in order for you to learn the status of the home.

Usually, once the borrower receives a notice of default, he would look for ways in order to make his payments current. If he is not really able to pay his debt, he may ask the lender of a probable short sale agreement wherein the lender agrees to sell the house in the open market at a price which is just near the fair market value. If you are financially ready, this would be the best time for you to make an offer. If the lender accepts your offer, well and good. But if not, you just have to wait for the foreclosure sale to take place. Since the sale is done thru an auction, make sure that you are ready to bid and compete with other interested buyers. If you give the highest bid, you will be the winner and will get the right of ownership over the property.

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