Short Sale, Foreclosure, Lis pendence... Home buyers who want a good deal in real estate invariably think first about pursuing foreclosures. Buyers have this picture in their mind of a nicely kept house, surrounded by a white picket fence that is owned by a widowed mom who fell on hard times, but that scenario is generally far from reality. Why Do Sellers Go Into Foreclosure? They stop making payments for a host of reasons. Very few choose to go into foreclosure voluntarily. It's often an unpredictable result from one of the following: · Laid-off, fired or quit job · Inability to continue working due due to medical conditions · Excessive debt and mounting bill obligations · divorce, problems with co-owners · death of the partner · terms of loan · Job transfer to another state or other country
What is Foreclosure? Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process usually begins when a borrower/owner defaults on mortgage payments and the lender files a public default notice, called a Notice of Default or Lis Pendens. The foreclosure process can end one of four ways: - The borrower/owner reinstates the loan by paying off the default.
- The borrower/owner sells the property to a third party during the pre-foreclosure period.
- A third party buys the property at a public auction at the end of the pre-foreclosure period.
- The lender takes ownership of the property, usually with the intent to re-sell it on the open market.
| Foreclosure in the State of Florida Typically a foreclosure begins when a lender files court action and records a “Lis Pendens” against the borrower. The lender notifies the borrower and any other affected parties in person or in some  cases by mail or publication. If the borrower does not respond to the court action within a specified amount of time, the county clerk can find the borrower in default and the lender can ask the court to make a final ruling. If the court rules against the borrower, the ruling will include the total amount owed to the lender and the foreclosure sale date. The lender is not required by state law to notify the borrower before initiating the legal process. However the borrower has the right stop the foreclosure up until the date of the sale by paying the total amount owed to the lender. This is a nice option, but in most cases it is not going to work. If he had the money to pay off the entire mortgage he would probably not be in default.
In some cases foreclosures are way below Market Value "One man's misery is another man's fortune" Banks are often willing to sell foreclosed homes for up to 30% below market value just to get these troubled properties off their books. However, prospective buyers should know that closing on that super-cheap distressed home is often a lot more complicated and risky than buying a home that doesn't have all of that financial baggage. But if you are aware of the stumbling blocks buying foreclosure properties is no rocket science at all. Be aware that you always need a little more time to get a foreclosure done and there is no guarantee that your offer will be accepted by the bank. "Cash" is king in the foreclosure business. You can always mortgage it out after you bought it. If you don't have enough cash you need at least a mortgage pre-approval from your bank in order to make an offer. We can help you find the right foreclosure property Distress Sales resulting from bank foreclosures often represent a great way to get a fantastic deal on a home. It's not easy for the average homeowner to find these deals, because you have to keep scouring the paper to see when one comes up. If you're the type of person who recognizes what a great deal some of these properties could represent, you will be interested to know about foreclosure properties on the market at this moment. |