Foreclosure, Short Sale, REO

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.

Dallas Chambers
RE/MAX Agents Realty
Office: 770-922-7777 X316
Cell: 770-595-1541

Web: http://dallaschambers.agentsrealty.com/
E-Mail: dallasc@remax.net

Each Office Independently Owned and Operated. All information deemed reliable but not guaranteed.