Feb
02
Is There An Incentive To Allow Your House To Foreclose?
ByI’m looking into buying a foreclosed house or possibly talk with a homeowner in the LA area who has a Notice of Default to take over the title and help them avoid Foreclosure. (Plus this is the only way it seems I can afford a place.) Does anyone know if there is incentive for someone to let their house foreclose? If not, why not make offers way below market value to NOD homes? I’m just trying to understand how the market works. Also, can you make offers on Foreclosed homes that would be considered by banks, or do they usually deal with specific REO banks and auction companies? Thanks.
4 Comments
February 2nd, 2010 at 3:16 pm
Well if they have already defaulted, you may have to deal only with the lender. And you better be approved by a lender to even put in an offer, otherwise the bank with not accept our offer. You might want to consider working with a Realtor familiar with these types of properties to advise you how best to bid on them and get your offer accepted. If I can help further, just email me.
February 2nd, 2010 at 5:47 pm
You can check out realtor.com or any real estate sites to see the foreclosed homes on MLS.
You cant deal with the lender until the foreclosure is COMPLETE and the people have been evicted.
There are very very few mortgages that will allow you assume someone elses mortgage… you have to buy the home outright and get your own financing.
Also, people are strapped right now because they probably owe a lot more then their house is worth.
February 2nd, 2010 at 5:50 pm
The biggest incentive not to be foreclosed upon is the affect it has on your credit. A foreclosure pretty much guarantees that you will not be able to purchase another house for at least 10 years. It’s always better to sell than to be foreclosed.
February 2nd, 2010 at 6:34 pm
If the seller tries to sell you the house for less than what is owed on the mortgage, the lender will have to approve the “short sale” before you can buy the house for the amount you offer.