Free Tennessee foreclosure listings available on real estate websites can help a lot to find a property within your budget. These listings include both residential and commercial properties foreclosed by banks and government. Foreclosure is a legal binding process of nullifying homeowner’s equal right of redemption when he defaults on repayment of home equity loans or property tax. Banks foreclose properties to get back their money while government forecloses homes to recover due property tax. Ongoing economic crisis, turmoil in the job market and credit squeeze are the major factors behind the increase in foreclosures in Tennessee. In this article we will deal with the foreclosure process and how to make a better deal out of it in brief.
Both judicial and power of sale commercial foreclosures are legal in Tennessee. However, power of sale foreclosure is the most popular one as it does not involve any judicial intervention. Power of sale is an integral clause of home equity loans. This is a mutually agreed agreement where the lender has the right to repossess the property under home equity loans when the borrower fails to make repayment. However, before initiating foreclosure the lender has to give time and repeated notices. There is also a grace period of 20 days before the foreclosure process is initiated. During this time the borrower can repay the loan amount and stop the foreclosure process.
Commercial property foreclosures are sold through the process of auction. Notices related to sale are publicized in local newspapers before 3 weeks of auction. Real estate websites also keep track of these properties. In the auction process, anyone can bid but the sale is confirmed to the highest bidder. The highest bidder has to deposit the cost of the property within a fixed time period. Any failure in this regard will lead to the forfeit of the deposit made.
Before buying properties from free foreclosure listings in Tennessee, make sure to inspect them physically. It will enable you to assess the exact amount required for the renovation of the property. These properties according to estimates can cost up to 36% cheaper compared to fresh properties. Litigations, tax and insurance dues on the property should be inspected prior. Last but not the least; you need to have the required money for purchase to avoid any last minute embarrassment.