A foreclosure occurs when a bank repossesses a house, usually when the person who bought the house has not made mortgage loan payments over several months. The home owner must vacate the home and the bank sells it in a foreclosure. A foreclosure looks bad on a credit report and will make it more difficult for the person who lost the home to buy another one. Foreclosure is the legal action taken to extinguish a home owner’s right and interest in a property, so that the property can be sold in a foreclosure sale to satisfy a debt.
Property Tax On Home In Foreclosure
When a bank forecloses on a property the property owner remains responsible for the property taxes. Banks set up tax escrow accounts to pay property taxes, but when home owners fail to make mortgage payments the escrow money may be used to make mortgage payments. If there's no escrow account, the home owner has direct responsibility for paying property taxes.
Buying A Foreclosure? Hire A Home Inspector And Attorney For Protection
When buying a foreclosure, it's important to hire a home inspector and attorney to protect yourself from any unwelcome surprises. A foreclosed property may come with maintenance problems that a professional home inspector can identify. An attorney will a home buyer purchasing a foreclosure by making sure the contracts are legal and the seller discloses any problems the house may have.
Homeowner’s Foreclosure Help Comes From Non-Profit
Homeowners can get foreclosure help from many areas. The most important thing for a homeowner who may be thinking about starting the foreclosure process is to talk to their mortgage lender about why they can't pay their mortgage loan. The homeowner may find other places to protect them from foreclosure including a non-profit organization.
How To Buy Foreclosures
Is buying foreclosure property a good way to break into real estate investing? Buying foreclosure property is getting increasingly popular, but chasing a foreclosure fortune isn't as easy as some make it sound. Timing and local market conditions are important to entering the foreclosure-buying business.
Owing Back Taxes After Foreclosure
After a home is foreclosed on, do you still owe the back taxes? You must determine if the foreclosure of the home and subsequent sale of the home by the lender produced enough cash to satisfy your debt to the lender. In some cases, lenders don't go after the difference from the borrower. However, in other cases, lenders keep will pursue that homeowner until they get all they can. A deficiency judgment would be the difference between what the lender got from the sale of the home and what you still owe the lender. The deficiency judgment gives the lender the right to continue to go after you for that amount of money.
Inheritance Property Sold To Investor, Other Heirs Want Property Back
What should you do if you inherit a portion of a home, but another heir sold his portion of inheritance property to an investor. The other two heirs want to keep the inheritance property and wants to get it back from the investor. Ilyce helps explain how to proceed with this inheritance property, and how to best protect your interests from the investor.
Buying A Property In Foreclosure
A home buyer is determined to purchase a specific home that is in probate and foreclosure. With all of the real estate on the market, this home buyer shouldn't be so stuck on buying a foreclosure home with so many problems. However, the lender might be able to work with the home buyer and homeowner to allow for a short sale and release the balance of the debt that is owed.
Buying A Home Before Foreclosure
A buyer almost purchased a home but the deal fell through due to fraud. The buyer is still interested in the home but is worried that the home will now go into foreclosure. A lender can't transfer title of a home unless it has good title to the home. If the lender does not have a good title to convey to the buyer, the only way to obtain title is to foreclose on the home.
Cautions When Buying Foreclosure Property
Investing in real estate? Buying foreclosure properties can be a viable and effective way to invest in real estate. But be careful that the way you structure the deal is not unethical or outright illegal.
Research Before Flipping Foreclosure Properties
Foreclosure properties are becoming harder to find as more people qualify for lower interest rates and lenders are working under a mandate from Fannie Mae and Freddie Mac to help customers stay out of foreclosure. Right now, it seems like only the investors who flip foreclosure properties professionally are making a profit. However, if you want to try flipping houses, good research is the key to your success.