Understand Foreclosure Lingo Before Purchasing an Arizona Foreclosure Property

Sunday, September 5th, 2010 at 4:26 pm  
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Arizona foreclosure listings will provide you with area properties which are

in foreclosure. However, did you realize that there are several stages to

foreclosure, and each stage has its own separate rules to follow. The

world of foreclosures has its own language, in this article we will attempt to

discuss the words most commonly used when dealing with foreclosures

and foreclosure listings.

Preforeclosure – This is the initial stage of foreclosure. At this point in the

foreclosure process the home or property owner has defaulted or fallen

behind on payments. At this point, the homeowner can be approached in

an attempt to conduct a sale. An independent appraisal, viewing of the

property as well as inspections can be easily arranged. Many times a

distressed homeowner will be very open and cooperative as the

homeowner is attempting to avoid the negative affect of a foreclosure on

his credit rating.

Auction or Trustee Sale ¨C The lender is attempting to sell the property via

auction. Buyer beware, many times the property is not open for viewing,

independent appraisals nor inspections. Additionally, properties sold at

auction or a trustee sale must be purchased with cash only. At times the

homewoner has refused to leave the property also causing additional grief

for the new owner. A redemption period may also be attached to a

property in the auction or trustee phase of foreclosure. Auctions may be

the place to get a good deal, however, it does not come without risks.

Redemption Period ¨C This is a time period afforded to homeowners

following the sale of their property at a auction. During this time, the

homeowner is allowed to secure funds or other financing to maintain

ownership of their home prior to relinquishing residency and legal

ownership.

REO or Real Estate Owned – REO properties are properties which were

placed on the auction block, however, did not have a winning bidder.

These properties are then returned to the lender who will take on the

responsibility to sell the property or have a real estate agent sell the

property.

Arizona foreclosure listings should give you accurate, timely information and

should inform you of which stage of foreclosure the property is residing.

Bob Smith regularly writes for E-ForeclosureSearch. If you want more information on Arizona Foreclosure Listings and other real estate- related topics, you can visit www.e-foreclosuresearch.com/.


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Foreclosure Overview & the Foreclosure Process

Saturday, September 4th, 2010 at 4:26 pm  
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A foreclosure is a legal proceeding taken by a bank or mortgage lender against a homeowner who has defaulted on their mortgage loan.  There are several steps in the foreclosure process; pre-foreclosure, auction, and bank owned.  It is possible to buy homes during each of these foreclosure steps if you know where to find them and who to contact.  A pre-foreclosure is just what it sounds, the time period between when the bank decides to foreclose on a property and when the actual foreclosure takes place.  When the bank decides to foreclose on a home, it is required to notify the homeowner of their intent.  The notification that is sent is called a Notice of Default (NOD) or a LIS Pendens.  The NOD or LIS also has to be filed with the County Recorder’s Office.  The bank is not allowed to release this information to investors, however, but investors are more than welcome to search the records at the Recorder’s Office and find out who is in pre-foreclosure.  Investors will then contact the homeowner and try to strike a deal with them to purchase their property before it is actually foreclosed on.  These deals are typically attractive to a homeowner because they want to avoid having a foreclosure on their credit.  Once the foreclosure proceedings have begun, a Notice of Foreclosure Sale (NFS) and/or a Notice of Trustee’s Sale (NTS) will be filed.  These filings will announce a foreclosed home that will be sold at auction.  A property auction is an event in which the public can place bids on a home that has been foreclosed on, or otherwise removed from the former homeowners.  The winning bidder is then obligated to purchase the home and becomes the new owner.  Finding foreclosure homes online is a great way to buy a house for significantly less than its value.  A bank owned, or Real Estate Owned (REO) property is one that has already gone through the foreclosure process and is now wholly owned by the lender.  Lenders will then decide to either sell the property at auction or sell it outright, often for just the amount that is owed on the home.  There have been instances where a buyer can pick up an REO house for just a few thousand dollars.  The bank just wants the money that they lost in the last deal and be done with it.  They have no interest in keeping property; that is not their business. Buying homes in foreclosure, or after foreclosure, can save you tons of money.  The average savings on a foreclosure home that is purchased is about 30% lower than the market value of the home.  Putting that into perspective, you can expect to buy a $200,000 foreclosure home for only $140,000.  That’s average, many people save much more than that on foreclosures.  You can search all kinds of foreclosure homes in your area online.  Maybe you will be able to pick up a nice foreclosure property for investment or to move into.

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    Pre Foreclosure

    Friday, September 3rd, 2010 at 10:24 pm  
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    www.BankREOProfits.com Pre Foreclosure Investing is Great BUT – Bank REO property is being given away at HUGE discounts! Buy bank foreclosures from the source! Learn how here…

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    Fed’s Rosengren: Consider community needs in solving foreclosure crisis

    Thursday, September 2nd, 2010 at 11:56 pm  
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    The nation has spent too little time on community problems that have arisen from the country’s housing crisis, the CEO of the Boston Federal Reserve said at a national summit about REO and vacant property issues.

    “Rather than treating the symptom — the high REO problem — we need to better understand how to resolve the more general problems in communities that lead to higher concentrations of REOs and exacerbate the effects of high REOs,” said Eric Rosengren, president and CEO of the Federal Reserve Bank of Boston.

    Rosenberg made his comments during a two-day Federal Reserve summit that began Tuesday in Washington.

    “Do we need more holistic approaches to addressing this crisis? Should there be more state and federal revenue sharing focused on providing flexible funds to the communities most affected?  My answer to both of these questions is a yes. But I would also argue that we need to not only explore alternative solutions, but also do a much better job of establishing which solutions work.”

    It’s important to consider how the foreclosure problem should be framed, he said, bringing forth three different existing views among housing and policy experts:

    1. If it is “a foreclosure and REO problem rooted in the housing bubble, the solutions will tend to emphasize mitigating the foreclosure problem or accelerating the disposition of REO properties,” Rosenberg said.

    2. If it’s defined as a housing problem, then the country “might focus on solutions that result in sustainable home ownership … focusing on financial education, addressing predatory home financing and redefining appropriate underwriting standards.”

    3. If viewed through the community lens, issues such as code enforcement, unemployment and crime must be addressed in neighborhoods disproportionately affected by foreclosures.

    The current crisis, Rosenberg said, contains elements of all three frameworks. “This is a foreclosure problem. This is a housing problem. This is a community problem,” he said.

    Not surprisingly, New England ZIP codes with a high concentrations of REO properties have suffered larger declines in home prices than ZIP codes with lower REO concentrations, he said. Communities that faced challenges before the foreclosure crisis made them more likely to suffer disproportionately the consequences of the crisis, Rosenberg noted. (Click chart to expand view.)

    ZIP codes with four or more REOs per square mile have higher property crime rates, higher rates of low birth-weight babies, higher unemployment rates, weaker small business activity and higher school dropout rates.

    “This is not a one-size-fits-all foreclosure or housing problem; these are community problems,” he said.

    Rosenberg said he’s encouraging the Boston Fed to look at how REOs can exacerbate problems in troubled communities look for solutions to address these neighborhood issues.

    Write to Kerry Curry.

    View full post on News | REO Insider

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    Buying a Foreclosure | Understanding the Short Sale

    Thursday, September 2nd, 2010 at 10:32 am  
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    What is a Foreclosure?

    A home in foreclosure happens when the owner has stopped making mortgage payments and the lender has given notice that unless the payments are brought up to date, it will take back the property.  Lenders can foreclose for other reasons, but the most common reason lenders file a notice of default is when a borrower is at least two – three payments behind.

    If the home owner does not bring the loan current, the lender will take back the property as collateral from the owner. Once the lender has take over ownership the property now becomes a Bank REO.  Banks will then list the property with an REO agent to market the home for sale.  Since banks are not in the business of owing and maintianing property, it is there goal to sell as fast as possible. Search Foreclosures Here

    What are REOs – Real Estate Owned?

    REO homes are often considered the best way to buy property because the seller is already out of the picture. It’s just the investor, the investor’s agent, the bank and the bank’s agent who are negotiating the transaction. Real estate investors and home buyers see profit in buying foreclosures because they can often buy the property for less than fair market value.

    What is a Short Sale Property?

    A short sale occures when a home owned owes more than the property is worth and can no longer make the mortgage payments to the lender. A buyer comes along and makes an offer to purchase the home asking the bank to “short” the mortgage amount to what the homes real fair market value is or in most cases 10% – 20% below fair market value.

    Unlike a foreclosure, Home buyers & investors typically buy the home for even less because they are not paying off the existing loan nor making up the back payments. These buyers are striking a deal with the existing lender to take less than what the lender has coming to avoid dealing with a foreclosure. The lender knows that if they foreclose on the home the process will be long and the properties condition will most likley deterioate making the property worth much less.

    To learn more about “how to buy a short sale or foreclosure” contact Shawan Pettigrew at 352-478-4300

    or go to Sterling Chase Realty on the web.


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    Where do I find foreclosure listings in town?

    Thursday, September 2nd, 2010 at 4:28 am  
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    I’ve searched yahoo answers but all I see is questions about websites. I don’t want a website because they can be inaccurate and they don’t list everything. So can someone tell me what place has foreclosure, pre-foreclosures and/or REO records for a city? I went to the court house but they didn’t know anything and gave me an auction listing instead. When I type “City Records” in a search engines I get only websites. If someone can point me in the right direction I would appreciate it. Thank you.

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    Foreclosure, REO Expert

    Wednesday, September 1st, 2010 at 4:23 am  
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    Foreclosed & REO Property Manager

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    What are the various lucrative options available under foreclosure homes for first time buyers

    Tuesday, August 31st, 2010 at 4:26 pm  
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    With the number of foreclosure homes surging the real estate market by thousands every month, first time buyers have the rare opportunity of purchasing some prime deals at nearly half of their actual worth. Some of the most lucrative options under foreclosed properties include REO or bank owned houses, fixer upper homes, pre-foreclosures as well as those that are being sold through public sales.

     

    REO properties are basically houses that have been reclaimed by banks when the previous owners have been unable to repay their housing loans.  Under such circumstances the house is taken over by the bank which will thereafter put it in the market for sale at a much reduced price than its actual worth. As these properties are owned by banks they are considered to be one of the safest investment options. Another advantage of buying an REO property is that they have a clean history without any pending taxes which makes them a very safe a viable deal on the whole.

     

    Fixer upper homes are also a type of foreclosure homes that have currently become very popular in the real estate market. These houses comprise properties that have been in the market for a long time and are not in the best of conditions and therefore require. This feature which makes them highly negotiable and they are therefore sold at unbelievably reduced prices. As lenders are especially keen on disposing of properties that have been foreclosed for a long period of time, fixer upper homes offer some of the most lucrative prices in the market. A buyer on purchasing a fixer upper home can carry out some renovations and resell it at a much higher profit in the market immediately or use it for his residence as well as a long term investment.

     

    Apart from investing in properties that have been foreclosed, home buyers can also make a lucrative deal by going for a pre-foreclosed one through the process of short sales. These comprise of properties that are facing an impending foreclosure. At this stage the lenders are more than keen on accepting a suitable offer even if it is highly reduced as it saves the sellers from spending more money on the process of foreclosure. Foreclosure homes are also sold through auctions or public sales which are also a very viable platform for finding prime property deals at bargain prices.

     

    With a wide range of affordable housing options available under foreclosure homes, investing in these properties is a highly lucrative and sound real estate venture on the whole.

     

    Fiona Livnat is an author with expertise in real estate foreclosures. She has over ten years of experience in writing about foreclosure homes . Her commitment to help people is reflected in her writing. For more details please visit http://www.foreclosureconnections.com/


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    How long does it normally take a bank to respond to an offer on a foreclosure?

    Monday, August 30th, 2010 at 10:27 am  
    Comments (3)

    I gave a best and final offer on a foreclosure home in Georgia three weeks ago. I know that the offer went from me to my agent to the listing agent to Fidelity National Asset Management Group and then to Chase REO Bank.

    In fact the asset manager thought it was taking so long he submitted it twice.

    Is there anything I can do to speed up this process? There are many other things I would like to do but cant get started until I know exactly where I stand with this.

    Is there a specific reason why the bank would sit on my offer for so long when the other two offers I had given were responded to within 48 hours?

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    Foreclosure vs. REO

    Sunday, August 29th, 2010 at 12:31 pm  
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    REO is a common term in the real estate market. It is the abbreviation for Real Estate Owned. The term seems to refer to any property. However, this is used to identify properties that were not sold during the foreclosure sale. This also means that there will not be an REO if the foreclosure sale is successful. The lender repossesses this property after failing to find a buyer.

    You might ask why people invest in REOs. After all, no one seemed to want it during the auction. Although this is the case, most REOs are in good condition. The only problem that most REOs face is that the previous owner could no longer afford to pay the mortgage. And besides, your decision to purchase a property should be based on the different factors of choosing a home and not on whether it is foreclosed or REO.

    However, investing in REO is a good thing. This is because of the several benefits you can enjoy. After knowing the benefits, people change the way they perceive REO. After all, they are not problematic. Additionally, purchasing one has many advantages. Some of them are indicated below.

    One of the benefits of purchasing REO is the fast and easy process. Most first time home buyers will surely appreciate investing in one because they will not have problems in most of the requirements. First, they will not need to evict anyone because the lender responded appropriately. In addition, the property is cheaper by about 20% compared to the market value of most properties in the market. It is cheaper because the lender wants to have the property sold right away. They do not want the property to stay long in their books. It is not a good indicator for the shareholders and other stakeholders.

    REOs are mostly risk-free. This is because the lender sees to it that it has a good title. If you buy such property, you do not have to worry about liens and other restrictions. Moreover, you can renegotiate the exiting value of the property. But you have to be careful with the offer you make. Very low offers will trigger the lender to look for another buyer.

    As you may have observed, there are several benefits of purchasing REO. However, why would one want to invest in foreclosed properties? Many do so because the properties are cheaper. Aside from that, REO will not exist if the foreclosure is successful. In order to purchase a property, the buyer has to bid. The bidding starts at a minimum value, which covers the balance of the mortgage and other expenses relating to the foreclosure process.

    The successful bidder will have the property as is. This means that he will have the responsibility of evicting the occupants. He has to deal with existing liens as well. He has to deal with the damages and other repairs necessary for the house.

    It is beneficial to purchase REO. However, its availability is not guaranteed. There are advantages of purchasing foreclosed properties as well. However, you have to exert efforts if you are able to acquire one.


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