Foreclosures are a fantastic way for buyers to find properties at below market value. It is a good tool for people looking to invest in real estate and to get a great deal.
If you are going to make an investment and purchase Myrtle Beach Foreclosures, you will want to become familiar with some of the terms used to describe and categorize properties in foreclosure.
In general, the foreclosure process starts when the owner or the borrower, defaults on the loan payments. (Usually, these are mortgage payments, tax payments, or home owner's association payments) The lender files a public default notice called a Notice of Default or Lis Pendens. The foreclosure process can end in one of four ways:
•1. The borrower/owner reinstates the loan by paying off the default amount during a grace period. This grace period is also known as pre-foreclosure.
•2. The borrower/owner sells the property to a third party during the pre-foreclosure period. This is known as a Short Sale or Pre Foreclosure Sale. Usually, this will require third party approval (the bank or lender) to agree and write off the loss. The Short Sales allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.
•3. A third party buys the property at the end of the pre-foreclosure period.
•4. The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure (deed in lue of foreclosure) or by buying back the property. These are also known as bank-owned or REO properties (Real Estate Owned by the lender).
Buying a foreclosure is not like buying a traditional piece of property. It all depends on what part of the foreclosure process you make your purchase. You'll want to consider things like tax liens, transfer fees, and homeowner association liens.
The best way to maximize your buy is to work with a buyer's agent that is skilled in the process of Foreclosures. A buyer's agent will work for you, in your best interest in all relevant areas of the transaction and can save you a lot of time aggravation, and money. There isn't any cost to hiring a good buyer's agent that has the up to date information needed and knows the market place.
You will also want to get your resources ready. That means if you are paying cash, have your paperwork in order to prove where your funds are coming from for the purchase. If you are financing your foreclosure purchase, you will want to get a letter of credit from an approved lender that is verified and can close your loan in that particular area. The last thing you want is to find the perfect property only to lose it to someone else bidding that has all their ducks in a row. You will also want to consider that just because you found the perfect deal, others may also think they have found the perfect deal. You may have competition as many foreclosure properties are now receiving multiple offers at the same time. Get your paperwork in order before making an offer so you can get the upper hand on negotiation.
A great tool in the Myrtle Beach Foreclosure Search is to sign up for VIP Foreclosure Listing alerts. You will get the upper hand on any new foreclosure listings before they hit the market and get a jump start on your bidding competition.
As with any Real Estate investment, it takes time and skill to put together a deal that will meet all of your criteria. If you know what you are looking for, and put the tools in place, you can have a successful and smooth purchase. It's a great time to buy! Some great deals are currently being made. Isn't it time for you to get the deal of the decade!
Jerry Pinkas Home Selling Team - is your local expert in all your Real Estate needs in the Myrtle Beach Area. Our Team is dedicated to informing our clients on how to be a pro in the local real estate market and avoid common pitfalls that are costly. You will have access to the most comprehensive MLS Listing Service in the area with Free access and with lots of tools for both Buyers and Sellers. Award-Winning - Top Ranked - Highly Recommended - Call The Pros - Google Us, or call (843) 839-9870; Put our team to work for you today.
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