Homes for sale in foreclosure by Frederic Din REALTOR(r)
See Imperial Valley listings, info & photos on your cell phone, text GOTO IVREO to 95495
What are homes for sale in foreclosure? They are bank owned or REO (real estate owned) properties in which the bank has taken the ownership of the home in the bank or lenders name.
The process in which a home goes into foreclosure is and can be a lengthy one, especially in judicial foreclosure states, however Imperial County or Imperial Valley California is located in a non-judicial foreclosure state, which means you don't have to attend a court hearing for your foreclosure.
California is a self-help state which the note and deed of trust most residential property owners get when they finance the home gives the specific details as to what happens when a default occurs (default missing payments).
Typically banks and lenders will beginning contacting you once your "grace period" or late charge period is over, which varies amongst lenders but say its 10-15 days. After that time frame your lender will start calling you and reminding you about your mortgage payment.
If the time frame is within three weeks, your lender may send you a letter requesting you to contact them and letting them know when your payment will be made. Should you miss a payment in the calendar month, your lender may report the missing payment on your credit history by sending a negative payment notice to the credit agencies, TransUnion, Experian, and Equifax, therefore aside from a late charge added to your payment, you will have a negative late mark on your credit report.
Typically during the time before two or three missed payments, your lender will send you a notice stating they intend to foreclose on the property by sending a Notice of Default, which is usually recorded with the county records office around three missed payments, however the time frame can vary.
Often times homeowners in this late payment stage will try to modify or sell their home through a process known as a short sale, which means they will sell their home for less than the amount they owe on the mortgage and the payoff to the bank or lender will be short (hence the term short sale), it has nothing to do with timing or length of the sale process. A short sale will result in a loss to your bank or lender since they have to agree to accept less than they are owed to clear your debt. The homeowner has to have a hardship in order to qualify for a short sale.
Short sales are often referred to homes for sale in foreclosure since the lender may continue the foreclosure process during the short sale. If the lender accepts any payments or a partial payment the foreclosure process stops and the foreclosure clock is reset, which is why most lenders who are in the foreclosure process will not accept any payments unless its a full mortgage payoff or a short sale.
If the lender does not receive a favorable market value for the sale, they may not approve the short sale and continue with the foreclosure process, which can take an additional two to three months to process.
The final state of a home for sale in foreclosure is the Notice of Trustee Sale, which is the sale by the lender to the general public at an auction typically held at the County Court house in El Centro 939 W Main Street. The auction times vary and are usually either at 2pm or 3pm, depending on the number of homes being auctioned at the time.
The Trustee Sale auction is not your typical auction, the lender sets the opening bid price and many times the amount is more than the home is worth which means nobody ends up bidding on the home and the home goes back to the beneficiary which is fancy speak for becoming bank owned.
If an attendee at the Trustee Sale auction would like to bid on a home for sale, they are required to show proof of funds by a cashiers check for the amount of the bid or more. Typically settlement (the closing of the sale) will take place within a short time after the auction is conducted and all sales are cash sales, no financing is eligible.
Those who bid on these Trustee Sale auction properties need to conduct their research before making bids on the property to ensure they are buying the note in first position or the first mortgage and not a junior or subordinate lien. The reason you want to research to deed history and outstanding liens is if the bidder buys a second or third mortgage they need to pay off the first mortgage to gain control of the home, which can be very costly and counter productive.
Ok Ok so perhaps an auction sale is not for you but I thought to share the process with you.
See Imperial Valley listings, info & photos on your cell phone, text GOTO IVREO to 95495
Most home buyers choose to buy a home at one of three stages, even through there are more than three stages, however these are the most common home seller stages in todays market.
1) The regular market sale seller - these sellers have equity in their home and are not in distress, they can sell their home without needing to short sale or being in foreclosure. Often times these sellers are not in a hurry and will wait a longer period to sell their home and get the offer they want. These homes can be in a variety of condition however most are owner occupied sales and the owners live in the home and are taking care of it.
2) The short sale seller - these sellers owe more on their mortgage than the home is worth, they are upside down and have no equity. As we discussed earlier, these sellers need their mortgage lender to approve the sale in order to sell and typically other conditions exist in the sale terms. The short sale sellers home condition can vary depending on the situation and if the owner still lives in the home. Most short sale sellers will not make any repairs or pay for any repairs or inspections since they are not making any money on the sale of their home.
3) The bank or lender seller - these sellers are financial institutions or banking entities which have foreclosed on the home and are now in a position to sell the home to recover some of the monies owed. The bank or lender has taken the loss against the home loan and is going to sell the home to get some of the money owed to them back. The condition of bank owned homes can vary depending on the bank and the situation. Most bank sellers will keep the home in average to good condition so it can be financed and sell easily, however other times the bank will not make any repairs and sells the home "as is", which means it may not be financed and in this case the bank will only consider cash offers.
Each seller has one goal and one goal only, to get the most money for the home in the least amount of time with the least amount of costs or repairs made.
Knowing these facts can help you, the Imperial Valley home buyer who is looking at homes for sale in foreclosure.
To learn more about buying your first home, check out my How To video called http://firsthomebuyervideo.com to learn more.
How can I help you? Feel free to visit and post comments regarding the website and stay tuned for upcoming changes to the look and feel of ImperialValleyREO.com
Are you in the market to buy a home? Get personalized information for any area in the Imperial Valley, including El Centro, Brawley, Calexico, Imperial, Heber and surrounding cities by going to ForSaleByFred.com, GetRealWithFred.com,
ImperialValleyREO.com, or First Time Home Buyer Video
Imperial County homeowners who are considering selling their home are encouraged to contact Frederic Din, REALTOR(R) for additional information about getting the most current market values for your home or area. Member of the Imperial County Association of REALTORS (ICAOR).
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Imperial Valley listings, info & photos on your cell phone, text GOTO IVREO to 95495
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