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Guest Post -- Buying Foreclosures from Colorado Condos to Great Falls VA MansionsPosted by Jay Seville on Tuesday, April 17th, 2012 at 3:40pm.
Buying Foreclosures If you are looking for a way to get a great deal on a new house, you may want to consider purchasing a foreclosure. After all, it is no secret that foreclosures are typically priced at well below the price of comparable homes on the market. Still, before you get your heart set on saving a bunch of money with the help of a foreclosure purchase, it is important to learn a bit more about the process of buying foreclosures. Whether looking for Colorado condos, or a new home in Great Falls Virginia, you can be sure to get the best deal possible and to be happy with the end results.
Many people fail to realize that there are actually various stages of foreclosure during which you may purchase a home. Depending on the stage of foreclosure, the process of purchasing the home may be somewhat different. The first stage occurs after the homeowner has missed anywhere from three to six months of payments. At this point, the lender orders a Notice of Default, which puts the owner on notice that foreclosure is imminent. During this stage, the owner is still free to sell the home on his own. Therefore, the process is no different from a regular sale, but the homeowner will likely be very anxious to sell and to be open for negotiations. If the home is not sold or if the loan is not brought up to current within three months, a foreclosure date will be established.
At this point, the homeowner will receive a Notice of Sale, which will be posted on the property and recorded at the County Recorder’s Office where the property is located. The Notice of Sale must also be published in a local newspaper for a three-week period. The lender will then move forward with a Trustee Sale, at which the property will be auctioned to the highest bidder. When bidding at a Trustee Sale, you need to be prepared to pay for the home with cash and to provide a deposit on the home within 24 hours after winning the bid.
In most cases, Trustee Sales take place at the courthouse where the home in question is located. Typically, the foreclosing lender will set the opening bid, which is generally equivalent to the amount that is owned on the loan as well as any additional fees associated with the sale. If there are no bids equal to this amount, the lender will purchase the property, thereby changing it to what is known as a Real Estate Owned, or REO, property. It is not too uncommon for foreclosed homes to reach this stage because the homes are often worth less than what is still owed to the lender. Since all junior liens and property taxes are wiped out at this stage, you usually receive the property with a clean title once it reaches this stage of the foreclosure process.
About The Author - Brian Kinkade is a Realtor specializing in Denver condos for sale with The Home Cart, a Denver, Colorado based brokerage.
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