Top Questions About Foreclosures
Great deals can be found in real estate, especially through foreclosures. But typically foreclosures are not fully understood. So, here are the top questions that we get at about the home foreclosure process.
Answer: While a judicial and non-judicial foreclosure varies from state to state, Massachusetts primary method of foreclosure is non-judicial. This method does not involve court action but rather it encompasses a foreclosure by sale notice. In a non-judicial foreclosure process, specific legal documents are required to have power of sale language and stringent notice requirements are in place.
Q2: After I become delinquent, how long does it take to complete the full foreclosure process?
Answer: Different types of loans have different time frames. The foreclosure process for government backed FHA and VA loans usually take longer than that for conventional loans.
Q3: What is a Bank-Owned REO property?
Answer: REO stands for “Real Estate Owned” and this is when a lender (bank) has taken over possession and ownership of a property. Usually this scenario is still a good deal, but typically not as good of a deal that you would get in the pre-foreclosure process since this is the final step in the foreclosure procedure. When the property is a REO property, then it is typically listed by a real estate agent and put on the Multiple Listing Service (or MLS).
Answer: Yes. You can bring your mortgage payments current along with all late charges, foreclosure fees, taxes and insurance premiums. If you are unable to do so, you can contact your lender and try to negotiate a plan to modify your payments but don’t wait until the last minute to do this. Other potential options include refinancing, selling your home or filing for bankruptcy.
Q5: How do I find a list of foreclosed properties?
Answer: While there are a number of ways that you can learn more about notice of defaults, public auctions and REO properties, it is best to utilize a licensed real estate professional who can guide you through the process of purchasing a foreclosed property and alert you to any red flags along the way.
Foreclosed properties can be a great deal as they typically sell for anywhere from 10 to 20 percent less than comparables. But they do require a little bit (or a lot) of knowledge and some homework to make sure that it is a good deal as opposed to something that is priced inexpensively and desperately needs extensive repairs (which can be very profitable as well). As professional real estate investors, we are well versed with the entire pre-foreclosure and foreclosure process.
Boston Estate SalesTop Questions About Foreclosures