The Age Of Bank Foreclosed Homes

Filed under House & Home.

Bank foreclosed homes are a double edged sword.  With the recent downfall of the economy a glut of homes have come into foreclosure displacing 1000’s of families across the country.  This is an extremely unfortunate circumstance for these poor families who were allowed to purchase homes beyond their means.

Over Financed Mortgages

Many were allowed to finance 100% of their mortgages with interest only payments and with loss of jobs, refinancing coming due and other circumstances this has presented an opportunity for others to profit from these foreclosed homes.

Financial Institutions are anxious to recoup as much of the loan as possible and there is a unique opportunity to pick up both low income housing, middle class housing, upscale high end housing and vacation properties never available at these prices.

You hear alot about bank foreclosures in the news these day but unless you’ve been involved in a foreclosure you probably don’t know exactly how it works. Before you decide to get involved in purchasing and/or flipping foreclosures you should understand how the process works…

The Foreclosure Process

Did you know that if you miss even one mortgage payment you could be in danger of having your property entering foreclosure?  Generally it will take 2-3 months of missing payments before the process begins but it’s crucial you make all payments on time in full.

If you do miss a payment you will receive a letter from your banking institution requesting payment immediately, not a good sign and not good for your credit.

Step One: Notice To Accelerate
After you’re 60 days past due you will receive a “Notice To Accelerate”.  Once this happens you are required to bring the loan “current”  to prevent or stop the foreclosure process.  You are required to pay all past due payments and applicable late fees assessed and possibly attorney fees.


Step Two: The Demand Letter

Not responding to the mortgage companies Notice To Accelerate will result in The Demand Letter.  The Demand Letter involves an attorney, the attorney will send you The Demand Letter formally stating that if you do not bring the loan current immediately the foreclosure process will begin in the courts.

Step Three: Notice Of Default

Okay so you haven’t responded to the Notice To Accelerate or The Demand Letter now what?  Now the lender (usually their attorney) will file a formal foreclosure document notice with the court in your jurisdiction.  On this document will be listed the entire amount needed to be paid, you have anywhere from 15 to 30 days to take action to this judgement before Step Four…

Step Four: The Notice Of Sale

Now 15 to 30 days have passed with no action on your part i.e. settling your loan.  Now you will be served with a Notice Of Sale which simply states that your property will be put up for auction, it will include the sheriff’s auction date.

As you can see bank foreclosed homes for sale go through quite a process before being auctioned.  Buying foreclosed properties can be a lucrativeve business or a great way to purchase a home.  Foreclosed properties come as is so if you can have an inspection done ahead of time it’s highly advisable.

In future articles we’ll be providing  information on taking advantage of bank foreclosure sales, tips on stopping foreclosures, tips on buying foreclosures and more.   Buying a bank foreclosed home is a great way to get a bargain on your first home, upgrade to a house they may have previously been unobtainable or building a real estate business via the rental market.  Remember bank owned foreclosed homes represent a good opportunity but you still need to due you homework into the condition of the property, there are many websites that list free foreclosure listings and allow you to  bid online for the property, personally I wouldn’t purchase any property without inspecting it or having a company I trusted inspect it ahead of time.  There are many things that can be wrong with the property.

I recently traveled to Florida with the hopes of picking up a vacation property for a song, there are many advertisements and courses promoting this type of investment, what I found was that there are so many homes in foreclosure in Florida, California, Arizona and Nevada (just to name a few) that the banks can’t keep up with proper upkeep on the properties.  Many have been looted by thieves, particularly of things like air conditioning units etc as well as unkeep yards, pools etc.   Another large problem is the construction boom before the housing crisis led to contractors using inferior products such as drywall imported from China which is actually omitting toxic fumes that are even starting to rot the copper piping inside the walls, this will be a huge expense and may render the property inhabitable.  Do your homework, that bargain may not be such a bargain.

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Getting Repossession Help

Filed under Stop Foreclosure.

Getting repossession help is vitally important if you’re facing having your home or car repossessed. Whether you want to avoid auto repossession or home repossession there are many places to get the help and advice you need.

The first place you could look for help in order to prevent repossession is online. While there is lots of incorrect information on the internet there are also plenty of trustworthy websites that’ll give you help when it comes to repossession laws and potential solutions. The important thing to remember is that the situation you are in financially will affect the solutions available to you so while the internet is a good place to start it can’t give you all the answers. The advice tends to be very general and it can be hard to work out which is the best solution for your specific situation without speaking to an expert.

The Lender should be the first people you contact when facing home or car repossession. Again, depending on the situation they may be willing to work with you in order to sort out the problems. In most cases the Lender will want to help you and come up with a solution because it’s cheaper for them than repossessing and selling the car or home. However, you’ll need to be able to demonstrate that you’re willing to work in order to avoid repossession. There are many ways the Lender can help you – loan modifications and repayment plans are just a couple of examples.

If you’re worried about your house being repossessed then there are several organizations to contact. For example, your nearest Citizens Advice Bureau is a good place to start because avoiding having to sell your home is important. They’ll be able to provide you with professional and impartial advice or at least point you in the right direction.

Remember, there are many places that provide help for people facing repossessions so you shouldn’t think you have to do it all by yourself. Repossessions are becoming more and more common so you shouldn’t be embarrassed by your situation either. In many cases having your home repossessed can be avoided as long as you don’t delay when it comes to getting help and making a decision. The real problems begin when people don’t respond to letters asking for repayment or think that the problem will sort itself out. In most cases this will only make things worse.

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