Buying Homes that have Faced Foreclosures
by Dallas Appraiser L.L.C. on 06/12/14
Title:
Buying Homes that have Faced Foreclosures
Word Count:
434
Summary:
You will find there are some people who tout the benefits and advantages of buying homes that have gone through foreclosures
Keywords:
#foreclosures, #Real_Estate_Appraiser, #Real_Estate, #DFW, #Arlington, #Fort_Worth, #Appraiser, #Appraisal, #Texas
Article Body:
You will find there are some people who tout the benefits and advantages of buying homes that have gone through foreclosures. Often, those homes are offered up for auction to the highest bidder and there are some really good deals to be had at that point.
There are some very important pieces of information you should have before you start planning to buy homes that have been foreclose upon.
First, understand that a lender gave money to the person who wanted to buy that house in order for that borrower to make the transaction. The lender had some expectation that he or she would recover all that money plus some interest, but most lenders simply are not in a position to handle property. They do not want to foreclose on the house because then they are going to have to do something with it. That means that the foreclosure process could take a long time while they look for some way to recover the loan from the original borrower, but it also means that most lenders are going to foreclose and then quickly offer the property at auction.
You have probably heard about auctions that ended with buyers getting really good deals. That happens, but it is not always the case. Why would a lender agree to let a particular piece of property go for less than it is worth? Remember that the lender is not in the real estate business and their primary objective will usually be to recover the amount of the original loan plus interest, if possible. If the original loan had been paid down significantly, the lender could agree to sell the property for a fraction of its value.
Another important point is that these auctions will typically be made public. For the person hoping to bid on the property after the foreclosure is complete, this probably means you are going to have some competition. This is the main reason it is not a good idea to allow the foreclosure process to run its course before you try to buy a particular piece of property ñ or to buy it back if you were the owner before the foreclosure.
Most lenders are not anxious to see property in foreclosure. They will often work with the owner for a long time, hoping that the loan will eventually be repaid. But when they have to foreclose, they usually do not want to hold the property long while looking for a buyer who will offer up a good deal. If you are planning to visit some foreclosure auctions, you may very well find an incredible deal.
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