At Franklin Realty Consultants, we can help you sell the property before the mortgage forecloses. The advantage to this is that you will not have a foreclosure judgment on your credit record. This can help make it easier to secure financing in the future. This option will more likely be available for borrowers who have equity in the property. By letting Franklin Realty Consultants sell your property, you can pay off your mortgage, and pocket the difference if there is equity remaining.
It is important to be aware that buying property in foreclosure without professional assistance can be a risky venture. Most foreclosed properties are sold “as is” and there can be problems not only with the structure, but there may also be liens on the property, unpaid taxes, and other problems to deal with. If you are not experienced in real estate, you should be very cautious before getting involved with purchasing foreclosed properties. That being said, buying foreclosure properties can be very rewarding and profitable if you are careful and thorough and have an experienced real estate agent by your side.
The first step will be to familiarize yourself with the applicable laws and the process in your area. Once you understand this, you will next want to start identifying geographical areas in which you would like to purchase a property. Once you determine the areas you are interested in, you will want to begin locating properties that are in the foreclosure process. There are a number of different ways to do this, including asking your real estate agent for area listings of these types of properties. Foreclosure properties may be listed several different ways, such as under “Foreclosure Sales”, or “Sheriff’s Sales”. You can also learn about properties if the lender is giving notice to the borrower of the lender’s intention to initiate foreclosure proceedings.
After you learn about the properties in foreclosure in your area, the next step is to inspect the properties you are interested in, if possible. Sometimes you will not be able to inspect the property ahead of time. You will then want to determine the value of comparable properties in the same area. This information can be obtained from your real estate agent. If you are still interested in the property at this point, the next step will be to find out who owns the property, and what liens encumber the property. Find out the balance in default to the lender, and the balance remaining on the loan that has resulted in the foreclosure proceeding. We can help with this as well
You will want to find out if back taxes are owed on the real estate. To determine this information you will want to conduct a full title search. Finally, you should make sure you are familiar with any land zoning, easement or toxic waste issues that could impact your use of the property. Also make sure there are no pest problems, other structural problems, and determine if any illegal alterations have been made to the property without the necessary permits. Once you know exactly what you are facing, how you will proceed will depend on what type of sale is taking place.
Buying a foreclosure property can be an excellent way to save money on the purchase of a home or property, but it is not without risks. The key to success is to be very well prepared and be sure that you completely understand the process and applicable laws in your area and have assistance from a licensed real estate agent. For most first-time foreclosure buyers, buying a pre-foreclosure property will offer the best opportunities of saving a significant amount of money without undue risk. Purchasing property at a foreclosure auction is far more risky, and is best left to professionals who are well-acquainted with how the process works. Buying a real estate owned property is very similar to purchasing property through a conventional real estate sale, and usually offers little savings over a conventional sale.