Learn About Foreclosure Property
A lot of people get a loan from the bank to buy their new home. A failure to comply with an agreement to pay the mortgage will default in payment of promissory note, secured by the bank or lender on a property. Since the bank keeps the title, technically the house does not belong to the client until it has been fully paid. If a person cannot pay their mortgage payment, the bank or financial institution will take the title for the property and this is foreclosure. The bank claims the title and possession of the property back in full satisfaction of a debt. Since the bank does not get anything form keeping it, it is best to sell it or the property is exposed to auction.
When the bank auctions a repossessed property, they will typically set the starting price as the remaining balance on the mortgage loan. Foreclosure houses are often sold at 20% - 50% less than their current market value. Banks try to get their money back in the same level as their equity in the property. This means you can essentially buy the property for the amount owed to the bank rather than for what it is really worth.
IS that not the advantage to buy a foreclosure property?
Of course it is, many people are investing in foreclosure property rather than buying it from a real estate. The highest bidder at the action becomes the owner of the immovable property, free and clear of any interest or back-taxes of the former owner.
When you are looking at listing, pay attention to properties listed as REO Foreclosure. It stands for "Real Estate Owned", and it basically means that the bank is the owner of the property.
For more information go to:
Learn about Foreclosure learn-about-foreclosure
Source: www.articledashboard.com
