Foreclosures

“Foreclosures” is the term commonly used to refer to properties that have gone through the legal process of foreclosure which entails the lender attempting to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan. The term and the properties are normally viewed in two complete separate ways depending upon the point taken. In one, it is the awful, final outcome of a situation that has turned sour and a family has to forfeit their home due to the inability to afford their current mortgage. In another, it is a great opportunity for a new family or an investor to acquire a home at what most believe to be a price that reflects a great savings compared to the original pricing of the home. Whichever view you have, “foreclosures” and even “short sales” (homes sold for less than mortgage value due to low market valuation prior to the foreclosure procedure) are common among the available inventory of marketed houses in most areas.

Buying a foreclosure is much the same as buying a home that is listed for sale by an owner and the process should not be feared by first time or seasoned home buyers. Much like a home that is listed for sale by an owner, a foreclosed listed home sales price can be negotiated along with seller paid closing costs. A buyer can also expect to be able to negotiate small repairs that may or may not be crucial for the financing used to purchase the home. It is a common misconception that these are actions that cannot be pursued on a property that is listed for sale by the bank that foreclosed on it. Much like an individual that is trying to sell their personal home, a bank’s goal is to move the property as quickly as possible at the best price they can receive while agreeing to an offer that allows for an expedited closing on acceptable terms.

“Foreclosures” and “short sales” can be great purchase opportunities for any buyer to pursue in this and any market. However, it is advised that a buyer have the ability to be patient while working on the process of completing the purchase of said properties. Due to legal paperwork involved in the foreclosure process and short sale approval process, there are times when gathering  and filing all the pertinent documents to legally complete the transaction and draw out for prolonged periods. In the end, if the deal is favorable for all parties, then with perseverance and commitment the deal will close and each party will achieve their goal of home ownership and the selling bank can remove a negative asset from their inventory.