The well-known phenomenon of foreclosures is hitting the United States again as a result of the global financial crisis. Many real estate owners were forced to move from their properties as they were repossessed by government authorities or banks due to non-payment. Foreclosure can be applied by government authorities or banks, depending on the situation.
The phenomenon of foreclosure appears only when the taxes imposed are not paid when they should. Then it is the duty of the legal authorities to act. Foreclosed real estate is sold after a short period of time, giving the owner the ability to pay their taxes.
This process is not something pleasant for the lender or the borrower, because both lose, but the most affected is the borrower, having to move from the farm. After that, his real estate will participate in a real estate auction, and the price may be even less than the value of the real estate, causing the lender’s loss. The highest bid wins.
Investment in such real estate is perfect for the buyer, because as said above, the price will be cheaper by 20 to 35% of the original price.
Before the legal transaction, the buyer has the right to inspect the foreclosed real estate, to verify if all the documents are in order and if the foreclosure itself is legal from all points of view. Sometimes even the legal authorities can make some mistakes and put the property in the auction process earlier and even if the new buyer would have won the bidding process, the previous owner can still pay the taxes and claim to get their property back, so imagine. all the mess .
Today the purchase process, in 60% of cases, is carried out through the Internet. Before launching into a bidding competition, pay special attention to the following things: make sure the site is updated daily, check if the site is certified, make sure you are dealing with real people, not bots, inspect real estate first, Do not be fooled by pictures online because they may be false.
I agree that most certified websites guarantee 100% buyer satisfaction and also make copies of all legal documents available to the buyer. They also contain real estate listings that are updated every 3-4 weeks. They also provide information about the entire foreclosure process, they guarantee through documents that the “second chance period” for the previous owner has ended, so you are free to participate in the bidding process. Of course, not all banks allow a “second chance period” for the previous owner of the real estate, and once the house is foreclosed, if you want to get it back, you have to participate in the bidding process.