Foreclosure Auctions: How to Find Them and What to Expect
Are you looking to buy a new home? If you are, you may be turned off by the real estate prices you see on the market. If so, this doesn’t mean that now isn’t the time to buy a home, but it does mean that you may be looking in the wrong place. Instead of visiting the online websites of realtors or flipping through their brochures, place your focus on foreclosure properties. Foreclosure properties are often considered a great buy, as they are easy to find and affordable.
One of the most popular ways that foreclosures are bought and sold is at an auction. This auction typically takes place at a county, town, or village government office, such as the clerk’s department. As for how you can find these foreclosure auctions, they are often advertised in local newspapers. You can also search local records, as foreclosures are public notice.
One of the few downsides to buying a home at a foreclosure auction is the inspection, as you aren’t typically granted one. Most bidders are bidding on the home as-is. As-is isn’t so bad, but it may be if you haven’t seen the property. With that said, since foreclosures are public notice, you should be able to get the address of the property in question. You will want to drive by. Although you should not judge a book by its cover, a drive by can give you an idea of what to expect. When you have doubts, it may be best to move on and target other auctions.
If you decide to attend a foreclosure auction, the last thing you want to do is just show up. That is unless you are scouting to see how an auction works. When you are serious about purchasing a foreclosed property at an auction, you need to be prepared. This preparation involves having financing lined up. Many will require that you either have the money on hand or show proof that you do have the financial resources needed to follow through with the sale. Contingency loans are generally prohibited. Check deposits are sometimes required before you can even place a bid.
As for the auction itself, it depends. It is not uncommon for bids to be sealed. Once everyone has placed a bid, the highest bidder will be announced. For bids that are not sealed, the auctioneer will start with a figure, often around $1,000 or less and the bidding will continue on. If you are the winner bidder, it is important to know that you may not be able to move into your new home right away. In fact, it is likely that you will be unable to do so. Many states give current occupants a redemption period or a grace period. This is where they can still fight to keep their home. After this point has passed, you can start the eviction process if the current occupants do not leave voluntarily.
As it was previously stated, you may want to attend a foreclosure auction and just sit on the sidelines. You should be allowed to do so. If you are unfamiliar with the buying and selling of real estate, foreclosures, or auctions, you can learn a lot. This knowledge is important, as many fellow bidders will be investors looking to turn a profit, not buy their first home.
Foreclosure: Can It Be Stopped?
Are you a homeowner who has been ignoring the warning letters and telephone calls from your bank? If you are, you may find yourself in the middle of a foreclosure crisis. At this point in time, fear may automatically set in. What will you do? Where you will live? Can you afford to move? Before you let fear take over, it is important to know that foreclosures can be stopped. Although this process is not easy, it can be done.
It is advised that you speak with your financial lender as soon as you find yourself experiencing financial difficulties. For example, when you get laid off or fired from your job, schedule an appointment to meet with your lender and develop a plan, before any problems arise. At the very least, communication should be made when you start receive intent to foreclosure notices. Even if you have a sign on your home stating that the foreclosure process has officially begun, you can still talk to your financial lender. In this instance, the sooner you do so the better.
As for why you should talk to your financial lender, even at the last minute, they want to avoid foreclosure as much as you do. Often times, lenders lose a considerable amount of money on the sale of foreclosure homes. If you can prove that your financial troubles are only temporary, your lender may give you a reprieve. They may stop the foreclosure proceedings for you. As for what can lead to this, you or your spouse getting a second job can help.
If you are dealing with a locally owned and operated bank, which you have been a loyal customer of, it is important to outright ask what can be done. Offer suggestions yourself, if you do not receive them. Could you continue making all future mortgage payments on time, but develop a payment plan for your past due amount? Can you only pay interest for the time being? Can you be given time to sell your home, as opposed to simply just losing it? These are all important questions that you should ask.
Another way that foreclosures can be stopped, in most states, is with a declaration of bankruptcy. However, this step is one that should not be made on a whim. It is first important to meet with an attorney specializing in bankruptcy. If you file for bankruptcy will the foreclosure proceedings stop? Can you make it so that your home is not considered an asset in bankruptcy proceedings? If so, this is the avenue that you may want to take. However, since bankruptcy can negatively influence your credit, it should only be used as a last resort.
Before you take any action with the hopes of stopping foreclosure, you need to closely examine the situation at hand. For starters, would you like to get out from under your property? If it is a money-pit that needs constant repairs, it might just be easier to go the route of foreclosure or even outright allow your bank to sell the property. If you want to keep your home, make sure that you can honestly do so. It is recommended that you take forty percent of your income and apply that towards your living expenses, this includes mortgages and taxes. If this isn’t possible for you to do, the avoidance of foreclosure now may result in the process starting again in a few months.
How and Why You Should Talk to Your Bank
Are you homeowner who is facing foreclosure? If you are, your first thought may be to start packing. Yes, this is the only choice for some in foreclosure, but that doesn’t mean it is yours. Before you throw in the towel, make an appointment in person to speak with your financial lender. You may be surprised how much help, assistance, or advice you may receive when doing so.
First and foremost, it is important to know that banks and other financial lenders are not evil. It may sound silly, but this is how many homeowners feel when facing foreclosure. Many want to know how another human being can force them to leave their own home. In the heat of the moment, many do not realize that banks want to avoid foreclosures just as much as homeowners do. Financial lenders often lose money on foreclosure properties. That is why it is imperative that you schedule an in person meeting with your lender.
As nice as it is to know that you should meet with your financial lender when you feel that you are facing foreclosure or know for sure that it is looming, you may be unsure how to proceed. For starters, many homeowners want to know when the discussion should start. In all honesty, it should start as soon as you know that you will miss a mortgage payment. It is best not to wait until the foreclosure process starts. If you can make payment, but need to do so a few weeks late, be sure to make your actions known. This will prevent your lender from even considering foreclosure right away.
One of the many reasons why homeowners are facing foreclosure is because of the job market. Long-term employees are now finding themselves standing in the unemployment line. If you are laid off from your job, schedule a meeting with your mortgage holder immediately. They may be walling to work with you, provided you will be taking proactive steps to find a new job. Often times, you may find your monthly mortgages payments temporarily reduced.
When your home enters into foreclosure, you will see signs posted on the building. With that said, this is not the first notice that you will receive. As a reminder, banks want to avoid foreclosure just as much as you do. That is why they will likely call and send regular notices to your home. As embarrassing as it may be to admit that you cannot make your mortgage payments, it is important to answer the phone. Remember, your bank may be willing to work with you and create a temporary payment plan. This is often the case when you can prove your financial hardships are only temporary. For example, are you temporarily unable to work due to an injury? Were you laid off, but looking for a new job? If so, make it known.
It is also important to determine how much you need to pay to stop the foreclosure proceedings in their tracks. Since banks want to avoid foreclosure, they may accept a portion of the money that you owe. With that said, this is where you need to proceed with caution. If the bank requires full payment the following month, make sure you can make that payment in full. If not, the process will simply just restart from the beginning all over again.
When discussing your options with your bank, it is important to do so in person. You will want to show your lender that you intend to get back on track financially, but this is difficult to prove over the phone. Walk into the bank with your head held high, dress professional, and be very confident. You need to prove to your lender that the words coming out of your mouth are true. Just because you say you are looking for a new job, it doesn’t mean that you are.
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