Depending upon your perspective, foreclosures may be an unfortunate occurrence or may be a golden opportunity. Obviously, if the lending institution has exercised their right to foreclose on your home, then this is not a good situation for you and your family.
However, if you are in the market for a home that is in good condition, may be around 10 years old and can be purchased anywhere from five to 50% less of the fair market value then a foreclosed home may be a good financial move for you to make.
When a foreclosure is transacted upon a home buyer who is in arrears, the lending institution wishes to sell that home as quickly as possible. Their intent is not to be a homeowner but to make a profit on a home loan. Therefore, in order to facilitate the selling of the foreclosed property, a foreclosure listing is generated
What Is A Foreclosure Listing
A foreclosure listing can either be a listing of pre-foreclosures or foreclosed properties that have been designated by a lending institution as being in default on their mortgage terms. A pre-foreclosure listing is that action taken in which the lender notifies the borrower that foreclosing action is about to be taken. Typically, this period of time is about 30 days. During this period of time the owner has the options of selling the home, satisfying the terms of the mortgage or doing nothing until the bank actually forecloses on the property. A foreclosure is that following period of time in which the lending institution has exercised its legal rights to take ownership of the property.
Where To Find Foreclosure Listings
There are different venues that offer foreclosure listings. Three of those resources are through the county, through the internet and realtors.
Often, when a foreclosure is exercised, the seized home is auctioned through the county in which the home resides. Following this seizure the home is placed in auction that is conducted at the county level. This process allows for the highest bidder to gain ownership of the property in question. Also, if there are any property taxes that are outstanding on the home those costs must be satisfied as well.
An additional resource in finding foreclosure listings is through the Internet. There are a number of Internet companies that, for a fee, provide a monthly listing of those homes that are in foreclosure or are in pre-foreclosure.
One additional resource to find foreclosure listings is through realtors that operate within the community. If the bank, through the bidding process, is not able to satisfy the debt, the property may be turned over to a realtor in an effort to sell the property to an interested party.
