Hi everyone here’s a quick tip today. It is all about Foreclosure what are they Advantages, Problems and where can you find them. The quick answer to what is foreclosure. The owner defaults on their loan.
Read this article completely and you will get a lot of good information.
The lender repossesses the property and then they go and resell the property that’s the foreclosure process.
The advantage with a foreclosure
The advantage with a foreclosure process. If you are the buyer and looking for a deal is that the lender or the bank or the government whoever is the person who forecloses.
Actually owns the property and they want to get it off their books as soon as possible so they’re very motivated to do that.
Some are in really bad condition some banks will actually put some work into them and sort of fix them up a little bit to try to get the best price for them.
Foreclosures or bank-owned properties are usually the best deals on the market. They’re the best price and you can usually negotiate the best deal especially if you are paying cash.
Problem with foreclosure
The problem with foreclosures is that they usually especially in the seller’s market where prices are increasing like we see today in the Philadelphia area.
Then there’s not a lot of them in the areas high demand areas like the higher rated School District areas. Usually, areas out in the suburbs in the country or in places with higher crime or lower-rated school districts you’ll find a lot more of these types of properties.
So when they do come on the market or do hit the market in the better areas they go quick and they usually go for cash.
Where can you go to find it?
So where can you go to find some of these foreclosure? The first place you can go is to a realtor, not every realtor I do it but there is a way for us to search for bank-owned properties on the MLS.
The other place is government websites. So the government ensures loans. When those loans are defaulted on and go back usually the government departments take those over.
Freddie Mac HUD homes are all government websites that have foreclosures and lists them for sale and they’ll also be on the MLS.
Another source of foreclosures is private banks. So just you know Wells Fargo, Bank of America, JP Morgan those are probably the ones I see the most again those will be on the MLS as well.
Another area and usually these are cash only are auction sites.
Some of these are on MLS some of these are not but they’re good resources. If you’re really looking for a deal and you are a cash buyer. Most likely these will go for cash sometimes they may go for a loan as well.
The last one which is more difficult and kind of harder to navigate the process is when someone is foreclosed on due to not paying property taxes.
So those are usually sheriff sales they’re done at the courthouse steps. They’re not listed through the MLS and you have to do like bidding and we have to have cash and that’s a whole nother area of foreclosures.