Buying California foreclosures for sale is a cost effective way of buying the home of your dream or make some quick profit once you flip and sell it. Properties that are already under foreclosure cost much less than the actual market price of similar properties in the same neighborhood. There are generally three to four approaches to buying such properties. Each of the three methods is only applicable at different stages.
Pre-foreclosure sales are very common nowadays. Instead of going through a lengthy process, property owners would rather sell the property and get back some of their equity after paying off the mortgage loan. Property owners normally have three months, from the time they get the notice of default, to make up for missed installments and get back on track with their payments. If they are unable to do this, the best option would be selling the property.
When the offer price is lower than the outstanding balance, the transaction is known as a short sale. The mortgage lender must approve such a transaction because it leads to a loss. The good news is that most lenders are nowadays more willing to consider short sales as opposed to foreclosing on property. This is because foreclosures are normally accompanied with huge processing and legal fees. Lenders also have to wait for a longer period before they can get their money back.
Foreclosure auctions are also great places to find property at very low prices. There are three things that you need to know before you attend the auction. First, you need to know the time and date of the auction. Secondly, you need to know where the auction is going to be held. Lastly, you need to know whether bids must be in cash or check. When attending the auction, you should have the cash or financing ready. Like other auctions, the highest bidder wins.
Properties that are repossessed and owned by the bank or a lending institution are normally tagged REO. Real Estate Owned properties are the best foreclosure assets to purchase. These transactions are straightforward because only two parties are involved; a willing buyer and a private seller. They are the easiest to conclude, and little paperwork is involved.
Non-judicial foreclosure proceedings are normally preferred to judicial processes. This is because transactions are finalized once payments are made and papers signed. With judicial proceedings, the property owner is given one year to redeem the property by making a lump sum payment within the 12 months. This period is too long for banks to wait for their money, or for buyers to acquire the property.
Whatever your preferred option, you should know that you can always get a better deal with some negotiation. However, this does not apply to auctions. Distressed homeowners can always lower their prices provided the offer price can clear the outstanding balance and repay some of the equity they have in the property.
When looking for California foreclosures for sale, always remembers that a property may be listed without the owner's knowledge. For this reason, always be sensitive to the financial situation of the property owner. Once the mortgage company sends the notice of default, the property will be considered to be undergoing foreclosure.
Pre-foreclosure sales are very common nowadays. Instead of going through a lengthy process, property owners would rather sell the property and get back some of their equity after paying off the mortgage loan. Property owners normally have three months, from the time they get the notice of default, to make up for missed installments and get back on track with their payments. If they are unable to do this, the best option would be selling the property.
When the offer price is lower than the outstanding balance, the transaction is known as a short sale. The mortgage lender must approve such a transaction because it leads to a loss. The good news is that most lenders are nowadays more willing to consider short sales as opposed to foreclosing on property. This is because foreclosures are normally accompanied with huge processing and legal fees. Lenders also have to wait for a longer period before they can get their money back.
Foreclosure auctions are also great places to find property at very low prices. There are three things that you need to know before you attend the auction. First, you need to know the time and date of the auction. Secondly, you need to know where the auction is going to be held. Lastly, you need to know whether bids must be in cash or check. When attending the auction, you should have the cash or financing ready. Like other auctions, the highest bidder wins.
Properties that are repossessed and owned by the bank or a lending institution are normally tagged REO. Real Estate Owned properties are the best foreclosure assets to purchase. These transactions are straightforward because only two parties are involved; a willing buyer and a private seller. They are the easiest to conclude, and little paperwork is involved.
Non-judicial foreclosure proceedings are normally preferred to judicial processes. This is because transactions are finalized once payments are made and papers signed. With judicial proceedings, the property owner is given one year to redeem the property by making a lump sum payment within the 12 months. This period is too long for banks to wait for their money, or for buyers to acquire the property.
Whatever your preferred option, you should know that you can always get a better deal with some negotiation. However, this does not apply to auctions. Distressed homeowners can always lower their prices provided the offer price can clear the outstanding balance and repay some of the equity they have in the property.
When looking for California foreclosures for sale, always remembers that a property may be listed without the owner's knowledge. For this reason, always be sensitive to the financial situation of the property owner. Once the mortgage company sends the notice of default, the property will be considered to be undergoing foreclosure.
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