User:KatyCox1457

The increase in real estate foreclosure by lenders over the last several years has caused a corresponding increase in home buyer complaints about the foreclosure industry. Many businesses have taken profits from the housing crisis by taking advantage of unsuspecting home buyers looking to purchase a first home or vacation home. The sad reality is that many people have fallen victim to these practices because they simply did not understand some basic facts.

The truth is that home buyers are not sure how to buy foreclosure properties. The fact is they should first engage a Realtor to find foreclosure opportunities. The first and most prevalent practice by some companies operating in the real estate foreclosure arena is to charge a fee in advance. Many companies currently advertise on the internet and other media outlets selling foreclosure listings for a fee. The truth is that Realtors see foreclosures first in the MLS. Asset managers and banks list bank owned properties directly with Realtors. Those listings then appear in the MLS and become active foreclosure properties.

Another concern of home buyers recently is the thought that a foreclosed home they purchase can be seized back if the former owner wins a lawsuit against the former lender. This is simply untrue. As long as the new lender and new owner have title insurance, the former owner cannot seize the home back. The new owner will keep the house and the displaced former owner will be awarded monetary damages at best.

Another misconception is that a foreclosure listing is the same a short sale listing. Be aware that a short sale is not a foreclosure. There are many parties involved in a short sale transaction; too many to be honest. A short sale usually occurs when a homeowner defaults on their mortgage, and they are looking to remove their loan obligation before their home is foreclosed upon by the lender. In order to sell the home; they have a Realtor put it on the market at a discounted rate, usually below market value. Sounds like a good buying opportunity; but is it?

Most often, short sale real estate listings will have prices posted that seem to be too good to be true. The problem is the listing price has not been approved by the lender, and most often will not be approved. In these cases, the bank approved selling price is eventually much higher and the new listing price will be raised in the MLS. This new price will not be near to what was originally stated to draw in the buyer. Even in cases where the primary lien holder gives an approval and can settle on a short sale price, there are often times when second lien holders will not. When more than one lien holder is involved, it becomes three times more difficult to get a real estate short sale closed.

We advise our buyer clients to avoid short sales (pre-foreclosure), and the lengthy buying process is only one reason. Buyer negotiation leverage is reduced in these transactions and we would rather see our clients look at bank owned properties (post-foreclosure). 任意売却 愛知