Credit for this photo goes to EquiFax
A foreclosure on a home is a when a homeowner failed to pay
the mortgage. A foreclosure usually takes a while to fully complete and after
3-6 months of not receiving any payment the lender of the home records a public
notice with the County Recorder’s Office stating that the homeowner has
defaulted on his mortgage. After the homeowner receives the Notice of Default,
the homeowner enters pre-foreclosure. During this time frame (which is usually
30-120 days depending on location) the homeowner can work out an agreement with
the lender by performing a short sale or pay off the outstanding amount owned.
If the amount is paid the foreclosure ends.
If the deadline
ends and the amount is still not paid the lender sets a date for the home to be
sold at a foreclosure auction. The notice of the auction is then recorded with
the County Recorder’s Office with notifications sent to the homeowner, posted
on the property, and printed in the newspaper. If a third party does not
purchase the property at the auction the lender takes ownership of the home and
it becomes a bank-owned property or REO (real estate owned).
- Be cautious of the current owner- if the owner still lives there you now have to worry about evicting the owner and they could possibly vandalize the home before leaving it.
- Buy from a bank- look for a home owned by a bank or REO. The bank is usually required to pay off senior liens like back taxes and you can now inspect the home for damage.
- Beat the crowds- after the home goes to foreclosure, but before it’s listed you could approach the lender directly and say that you are interested in it. If it’s a local or community bank and the home has been on listing for a while they may be more than happy to get rid of it.
- Find a realtor that specializes in foreclosure homes in Holmes Beach, Bradenton Beach, or Anna Maria- they can help advise you in pricing, local zoning issues or state law constraints, as well as looking in to public records on if the property has any recorded liens; such as, unpaid taxes, repair/ maintenance bills, or homeowner association dues. Once you purchase the home you’re now responsible for those outstanding liens.
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