Is It Wrong To Buy A Foreclosed Home?
A: State law provides that any owner, mortgage holder or defendant in a filed tax foreclosure proceeding can stop the foreclosure process at any time by redeeming the property. Well it’s really about you and what you’re looking to do. If buying a foreclosure you can pretty much expect to (not always but often) make repairs to the property (wether financing or paying cash), you can expect to see properties that might have violations with the town, and you can almost always expect to pay less than market value. A deed in lieu of foreclosure is also used when the borrower faces foreclosure.
Approved government agencies can bid on homes in Lottery, Exclusive, and Extended phases provided they are in approved purchase areas. This process is generally much faster and cheaper than foreclosure by judicial sale. The bank that owned the foreclosure accepted our bid in early June and we finally signed the paperwork and moved into our house in late September—almost 100 days after our bid was accepted. If awarded a final judgment from the court, the lender will proceed with the foreclosure and the property will be scheduled for sale. The large cash outlay required to buy foreclosed property at the Sheriff’s Sale is the biggest deterrent for most buyers.
You may be able to avoid foreclosure by negotiating a new repayment plan or refinancing that works better for you. If the MLS does not have the listing, then the property is not for sale – not even a bank-owned home, because banks also list homes through the MLS. The former purchaser will be held responsible for all costs and expenses incurred for the prior sale. Not all contract sales are contentious, and some nonprofit organizations have recently tried using the arrangement as a vehicle to help get homeless families into homes. We offer powerful and accurate tools for anyone interested in searching for Tacoma foreclosure homes.
Elaine Zimmerman, a real-estate investor and author, recommends that shoppers first visit any site with a database of foreclosed homes. With a 28 percent decline on a foreclosed home comes a 4 percent decline on neighboring homes – meaning a nearby home with an initial property value of $250,000 could see almost a $10,000 decline, just by being in a quarter-mile radius of a foreclosed home. We have the largest and most up-to-date foreclosure list in the United States, including foreclosure, preforeclosure, short sale and rent-to-own, among other, distressed real estate listings.
Ultimately, buying a foreclosure is a complex process that can result in a true bargain when done right or a terrible decision when approached carelessly. According to Raimondo, the perfect foreclosure customer is someone who can pay the offered price in cash and can buy the house immediately without having to wait to sell another home. This tends to be a slower process and involves more paperwork than other types of foreclosure transactions.