What is a foreclosure home?

When the home owner falls behind on the mortgage payment, the house might be foreclosed on. This is the repossession of the home by the financial institution that gave the loan to try to recover their loss. Banks usually consider the loan in default when payments fall 3 months behind.

-There are 2 types of foreclosure homes, judicial and non-judicial. A judicial foreclosure occurs when the court issues a lawsuit against the homeowner, and if they do not respond (meaning pay the back mortgage), then the mortgage lender automatically wins the lawsuit, and the home is then put up for auction. The court actually presides over the auction and the house goes to the highest bidder. The mortgage lender will put in a bid-the amount that is actually still owed on the house. If their bid is not beat, then the mortgage lender gets the title to the home, and they can resell it for profit. If another bid beats the mortgage lenders then that person gets the title to the house.

-Non-judicial foreclosures do not involve a lawsuit. The financial institution issues a notice to the homeowner about the default on the loan and their intent to seize and sell the home. The homeowner can (if they are able) pay the money that is owed, or possibly come to an agreement with the mortgage lender. This could include smaller payments, possibly even delayed payments. If an agreement is unable to be reached, the homeowner can prevent foreclosure by filing for bankruptcy (although this is certainly an absolute last resort). However, if the homeowner is unable to stop foreclosure, then the house is auctioned off just like in a judicial foreclosure home.

-Usually the home will sell for an amount that will cover what the mortgage lender is owed, but if it doesn’t the homeowner is responsible for the deficiency judgment, or the difference between what is owed and the selling price of the house.

***When most people buy their house they do not have the money to purchase the home outright. In able to be able to purchase the home, they get a mortgage loan from a lender, and make monthly payments to pay off their home. In exchange for lending the money, the lender will hold a lien against the property. If the buyer misses several payments in a row, the loan goes into default, and the lender might exercise the lien against the property. This enables the lender to take possession of the property, so that they are able to sell the property to pay off the borrower’s loan. This is called mortgage foreclosure home.

How long does the foreclosure process usually take?

It is not uncommon for 6 months to pass between when you miss your first payment and the final foreclosure home sale, although this can vary from state to state. It can also depend on your lender and how quickly they pursue your case.

How do I start using the Current Foreclosures website?

The 15 day trial is the best way to start. For just $1, you can have full access to the website, which has over 22,000 foreclosure properties. You will also have access to all the bonus features, including being able to view the daily updated lists of foreclosure homes, and E-books that will help you get the most out of your foreclosure investment.

 What are the advantages to being a member of Current Foreclosures?

-Access to over 22,000 foreclosure homes

-Foreclosure lists updated every day for the most current information

-Ease of finding listings in your area

-Huge discounts that are offered on EVERY house!

What tips do you have for buying foreclosure homes?

Well first, the best deals get snapped up fast….so make sure you have your financing pre-qualified. You should be sure to know the house well-where it is, the neighborhood, the repairs that need to be made, and guesstimate the cost of those repairs. Compare that to the amount which you are pre-qualified for, and make sure that you will be able to buy the house and make the repairs with the amount that the bank has allotted you.  Finally, anticipate how much you can sell the house for by appraising other houses in the neighborhood that are close in size and layout. Once you done this you are ready to bid!

I want to buy a foreclosure, but I don’t want to pay the realtor’s fee.

The best way to buy a foreclosure (especially if you don’t want to pay a realtor) is to use a website (like www.CurrentForeclosures.com) to find the house you want, and then to make the bid.

What are the “other” costs I might have to pay after buying a foreclosure?

Many foreclosure homes are in need of some repairs, or some updating if it is an older house. You might have to put fans in the bedrooms, or paint, or replace an appliance or two. You will be more prepared if you check out the house before you buy it. Buying foreclosure homes is buying as house “as-is” and you will be more prepared if you inspect the house before you bid on it, and factor the repairs and/or renovations into the amount of your loan.

Buying foreclosure homes sounds kind of risky and/or difficult? Is it even worth investing?

First, yes investing in foreclosure homes can sometimes be difficult, but if it were easy everyone would do it! With a little work, and a little risk, buying foreclosure homes can have a large payoff. If you pick and choose your houses wisely, you could possibly make $30,000-$50,000 when you resell the house! Just doing 3 or 4 foreclosure homes a year could be a fantastic side income, or even your main income!

Do you need a real estate license to flip real estate?

The majority of the time, the answer is no. Each state determines their own real estate laws, so check the laws in your state.