Al Beaudoin

Foreclosures are something that is faced in current economic times. Thousands of homes are being listed as foreclosures and banks are willing to sell foreclosed houses at a cheaper price. If you are a first time buyer or an experienced investor, then this is the perfect time to buy as an attractive investment opportunity.

So why does foreclosures occur? Well, the main reason behind foreclosures is the default on mortgages or taxes. Default means the homeowner failed to make principal and interest payments constantly. It also means that the owner is making partial payments as most lenders consider such payments to be void. Once the owner has reached a certain number of default payments, a legal notice is sent by the lending institution/ bank and then the foreclosure will proceed.

Before you plan to buy foreclosures property, it is very important to understand the process behind foreclosures. You need to learn many things involved in the foreclosure process to make sure it runs smoothly for the bank/ lender institution and you.

A foreclosure sale instigated by the banks generally takes place on the local county courthouse where the properties preside. The courts will set a date of sale. The homeowner will be given a notice in advance prior to the sale of bank owned foreclosure homes.

During a foreclosure sale, several properties are being auctioned. If you want to buy foreclosures property, you better conduct a good research about any bank owned foreclosure homes. You will not get any information about problems and repairs from the auctioneer.

Most bank owned foreclosure homes for sale are auctioned through a closed bidding system. Sealed bids are placed before the auctioneer highest bid will win the property. If you are the highest bidder then you will have to make a 10 percent down payment and rest in the form of cash or bank account check to buy foreclosures property.

There are some formalities required after winning the bid. You will have to sign and fill certain important documents and will have a month or 30 days to secure a loan for purchasing the property.

Let's have a conversation about your real estate goals today.

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