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How does a foreclosure affect an investor purchasing a property at auction?
Wiki User
∙ 13y ago
the person could go into a lifetime of debt....NOT GOOD!
Wiki User
∙ 13y ago
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What is the difference between preclosure and foreclosure?
Be aware that a pre-foreclosure property is not necessarily for sale. The pre-foreclosure stage is the period between the time in which a Notice of Default (in non-judicial foreclosure) or lis pendens (in judicial foreclosure) has been issued to the homeowner and after the property is sold at a foreclosure auction.
What's the difference between a foreclosure auction and a regular auction?
A foreclosure auction is a forced auction. The person who used to own the property being auctioned owed either the bank or the government money. For not paying the money back, their property is sold at auction to satisfy their debt. A regular auction could be anything and isn't necessarily to pay off debt, but usually to make a profit.
Can a foreigner buy a property in an auction for foreclosure?
Yes. A person does not have to provide proof of citizenship to purchase real property in the US.
How long does foreclosure take?
This varies depending on which state you live in. It is typically around 6 months from beginning of foreclosure to the end (when the property is sold at auction).
What is the maximum amount a homeowners association can recover on a property bought at auction by a private investor in Colorado?
The answer you want is in the auction documents involved in your purchase. There is no standard.
Do you have a chance to inspect property you are considering for purchase at a foreclosure auction prior to the auction?
There is no chance a bidder would be able to request a viewing of the property being auction of as a foreclosure! That having been said, buying property at a foreclosure auction is an experience unlike any other in purchasing real estate. Although it can be a risky venture, it can often also very lucrative. Consequently, while you should try to participate in a foreclosure auctions, first-time and inexperienced investors should tread very carefully. In contrast to an ordinary real estate sale, most times a potential buyer will not even be allowed to inspect or survey the property prior to the auction. Partially as a result of that, and owing partially to the fact that one will have to come up with the entire purchase price in cash over a short period of time, a purchaser at a foreclosure auction would likely have to find nontraditional financing and then later refinance to a more traditional mortgage. == == Yes-- there should be a realtor that is handling the sale although I have seen people just walk around looking in windows and trying doors.
What happens if the home fails to sell at the foreclosure auction?
by definition, a foreclosed property has to have someone file the foreclosure usually due to them being owed money and the property is security on the property. This is not cheap or free. Hence, there is always a "buyer" out there which is often the lender.
So many foreclosures If I want to buy one what should I do?
Foreclosures can be a good investment for the savvy investor. However, their prices aren't likely to be such a bargain. The bank is looking to get rid of the property, but they are also looking to recoup their losses as well. In addition, properties purchased at a foreclosure auction are often times sold in an 'as is' condition. You are not able to view the property before purchasing and most of the time can't get out of the deal once it's done. Pre foreclosures, motivated sellers and wholesale real estate properties will give you, the investor, a better chance at getting a cheap price. This can sometimes fall between 20-50% off fair market value! If you're not an investor and just looking to purchase a property for yourself, again, beware of foreclosure properties purchased at auctions. If that is your avenue of choice, I would suggest attending a few auctions beforehand to get as much working knowledge of the procedure as possible. Also, try and get in touch with the owners of the property you are looking at to speak with them before the auction occurs.
Can the bank come after me for money after a foreclosure?
Yes. If, the amount they auction the property for is less than what you owe they will come after you for the difference.
Are there any legitimate foreclosure auction websites?
prlog.org is one of the legitimate foreclosure auction websites.
Do you get the best deal by buying a house at a foreclosure auction?
Yes, you get the best deal by buying a house at a foreclosure auction. You can read more at www.realtytrac.com/foreclosure/Auction/how-to-buy-homes-at-auction.html
What is a reo property?
REO (Real Estate Owned) is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. This is usually the case as the amount owed on the home is probably higher than the value of this foreclosure property. As soon as the bank repossess the property, it is listed on their books as REO, and is categorized as an asset (non-performing).
