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Tips for Buyers of Real Estate Bank Foreclosures



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By : Julie Thompson    99 or more times read
Real Estate Bank Foreclosures are on the increase and so is the rate of purchase of foreclosed homes in the U.S. Almost all 50 states in the U.S. has Real Estate Bank Foreclosures mounting as the financial crisis has hit hard on the economy affecting most homeowner’s financial budget. The defaulted loan cases by the banks for non payment of loans are put in foreclosures. Banks in the U.S. are the worst affected after the sub prime crisis which is leading in early foreclosures as caution step by most banks.

Various reasons could trigger a default by the homeowner which could be divorce, unemployment, financial crisis, interest rate hike or bankruptcy. This results in bank sending reminders to the homeowners for delayed payments which if ignored starts the foreclosure process. In most cases the banks try to help the borrower by giving him grace period to repay the loan and delay payments. In case the borrower is unable to do so, the bank is left with no option than to start the foreclosure process by exercising the mortgage rights.

Real Estate Bank Foreclosures process starts as the borrower is unable to repay after repeated reminders from the bank and the bank exercises mortgage rights and takes over the property. The borrower has to immediately vacate the premises and this is a serious situation for the borrower as the space is lost and the borrower loses his financial credibility for 20 years which is quite a long period. The lender then puts up a public notice for the sale of the property in an auction after foreclosing the loan and the same is sold at an auction on the predefined date at a pre defined location.

The sale of Real Estate Bank Foreclosures are a boon for any first time buyer or real estate investor as they can avail the best property at cheap rates which is generally 20 to 30% cheaper than the prevalent market price.

The buyers should take extreme care while purchasing a property from Real Estate Bank Foreclosures as the property could be over evaluated in some cases which shall result in the buyer making a loss in the process. In most cases the price of the property asked by lenders is the outstanding loan amount and is much less than the prevalent market price but the buyer should be cautious to check the details. The buyers should check for neighborhood prices and calculate the amount accordingly. The buyer should also inspect the property for any damages or renovation required which could be requested to the seller and save money. Cosmetic Damages are repairable and the buyer could either request the seller or get it repaired himself. In case the property has structural damage, the buyer should discard the decision of buying such a property as the repair is not of any use.

Most websites feature listings on Real Estate Bank foreclosures and the same can be checked on the basis of state, county, cities and localities which can be compared as the price is mentioned and the same shall allow the best to be picked.
Search Foreclosures by state or get more information on Foreclosed Properties at Foreclosure1.com

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