If a house is in foreclosure, when is the best time to make an offer to buy it?
Jul 20, 2009 in
Financial and Loan Tips
golfguy650
What do you do and how do you do it? I have a list of houses in various stages of foreclosure, now what?
What do you do and how do you do it? I have a list of houses in various stages of foreclosure, now what?
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One comment
Mukunda M on July 22, 2009 at 11:03 am
Your first opportunity comes in the “pre-foreclosure” stage, when owners have already defaulted on their mortgage payments but actual foreclosure hasn’t happened yet. To find out about houses in default, visit the local courthouse where defaults are registered. You can then make offers directly to the defaulting homeowner. However, few pre-foreclosure bargains exist among the most desirable homes. Many of those will sell for near their appraised values. Properties that sell at a 20 percent to 40 percent discount usually need repair or are in undesirable communities. At this stage you have about 90 days to act after the default notice is posted and another 21 to 25 days after auction sale date is published. If a property doesn’t sell in pre-foreclosure, and the home owner actually defaults on his mortgage, the home goes to public auction. During this stage you can find the best bargains, but it is fraught with difficulties. Properties are sold “as is,” without warranties. Sellers needn’t disclose problems. Buyers may find themselves with unexpected — and expensive repairs. etc. etc.
Hope this helps.