| There are three stages of bank foreclosures that you | | | | price will be set by the lender and determinations |
| can purchase a home and walk away with a new | | | | made by appraisers and other people. The sale may |
| residence or a big investment. These different stages | | | | be lower than what you owe on the loan because the |
| include pre foreclosure, the auction, and after the | | | | bank is willing to take as much as they can get for the |
| auction. It is important to know how the buying process | | | | home. Their goal is to sell the house so they do not |
| differs when a home enters into these different | | | | have a home on their books. |
| stages. | | | | If the bank foreclosures do not sell at the auction then |
| The first stage of bank foreclosures is when the | | | | they sit on the books at the bank. Banks will do what |
| borrower is still considered the home owner and they | | | | they can to sell them but they do not do much. The |
| are going in default because they have missed a | | | | problem is that banks do not have money to invest in |
| payment or two on their home. This is when you have | | | | advertising foreclosures, maintaining the property, and |
| the opportunity to talk to the homeowner to see if you | | | | other things. When foreclosures get to this point the |
| can just take over their payments and the loan or if | | | | price of the home is going to drop even more and be |
| you can buy the home directly from them at a great | | | | an even better investment. |
| price. The best way to buy the home in this | | | | There are three primary stages of bank foreclosures |
| circumstance is through a short sale. The home owner | | | | that homes go through when a borrower fails to pay |
| will benefit by not ruining their credit and you will benefit | | | | on the mortgage as promised in the loan agreement. |
| by owning the home at a great price. | | | | These three stages include pre foreclosure, the |
| The second stage of bank foreclosures is the auction. | | | | auction, and when the home doesn't sell at the auction. |
| When homes go to auction this is when the home is | | | | Understanding these three stages may help you |
| taken from the borrower and offered up for sale on | | | | determine when the best time is for you to invest in a |
| the front steps of the local courthouse. The asking | | | | particular property. |