D J Winter
(717) 441-2794
I hope you've had a chance to explore the foreclosure properties on
remax.com. Let me help you interpret what you're seeing.
First, foreclosed properties are not all the same. When homeowners
default on mortgage payments, there are three possible outcomes
involving the sale of the home. (A fourth possibility is that the
homeowner pays off the default amount of the loan, thereby keeping
the house.) As a buyer, you can be involved at any of these stages:
1. After defaulting on the mortgage, the owner sells the home
during a grace period determined by state law. This is known as
the pre-foreclosure period.
2. The property is sold at public auction at the end of the pre-
foreclosure period.
3. The lender (or a government agency such as HUD) takes
possession of the home with the intent of selling it on the open
market. These properties are known as REOs (Real Estate
Owned by the lender or the government).
I can help you purchase a home at these stages:
Pre-Foreclosure
You and I would work directly with the owner or a listing agent. You
have time to research the title and condition of the property and
structure an offer that reflects the property and market conditions.
The lender will sometimes agree to a short sale - meaning the home
sells for less than the homeowner owes on the mortgage. This option
better preserves the homeowner's credit, and the lender generally
suffers a smaller loss than in a foreclosure.
REOs
The lender/owner will typically have cleared the title and performed
basic repairs and maintenance. You may not get quite as good a price
at this stage as you would have earlier. In the case of HUD homes -
which involve defaults of FHA or VA-backed mortgages - we would be
working with an agent who lists all or most of the HUD homes in your
area.
I hope you've found this information useful. Please give me a call and
I'll be glad to answer any other questions you have about buying a
foreclosure or pre-foreclosure. And if the time comes when you're
ready to move forward with a purchase, I'd be honored to represent
you.
D J Winter
RE/MAX REALTY SELECT
(717) 441-2794
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