| Basically a foreclosure is a situation in which a home | | | | 2. Foreclosure stage is the second step in foreclosures |
| owner defaults on the mortgage payments for their | | | | for sale. The auction is the next stage after the |
| house. Such properties which are foreclosures for sale | | | | pre-foreclosure stage. You can attend an auction and |
| are called as distressed because typically the home | | | | bid for the property. Usually the auction is held at the |
| owner is in financial distress and has defaulted on his | | | | county clerk's office. |
| payments. The owner may be in financial distress | | | | During an auction, the lender tries his best to get the |
| because of the following reasons:o Laid off/fired or | | | | best possible price on the property under foreclosure. |
| quit jobo Unable to continue job due to medical | | | | At an auction sale, buyers are required to buy in cash |
| conditionso Mounting debt and excessive billso Tiff with | | | | and without having the facility for prior inspection of the |
| co-owner or divorceo Relocation to another state due | | | | property in concern. However an auction sale does |
| to job transfer | | | | permit good bargains as much as 40 to 50 percent |
| Getting foreclosures for sale does not happen in a | | | | below market value. |
| day. A typical foreclosure process can extend over a | | | | The best way to identify foreclosures for sale at this |
| few months. Each stage of foreclosure offers | | | | stage is via the county clerk's office. Find out about |
| different types of opportunities to the potential buyer. | | | | notices of default that have been filed to locate |
| There are three stages of foreclosure namely | | | | pending foreclosure sales. |
| 1) Pre-foreclosure | | | | The foreclosure process will vary from state to state |
| 2) Foreclosure Auction | | | | depending on whether it is a title or lien state which |
| 3) REO stage or Real Estate Owned by banks | | | | determines a judicial or non judicial form of foreclosure. |
| 1. Pre- foreclosure is the first stage in the process of | | | | Judicial foreclosures pertain to mortgages and take |
| foreclosures for sale. In this stage the home owner | | | | long to finish. Non judicial foreclosures involve deeds of |
| has not paid up the mortgage of the loan for the first | | | | trust, where a third party, a trustee handles the |
| time and is now considered as a defaulter. A | | | | property after period of default. |
| pre-foreclosure is also called as NOD (Notice of | | | | 3. Third stage is Real Estate Owned (REO) stage |
| Default) Or Lis Pendens as a formal warning is sent to | | | | where the property reverts to the bank. REO |
| the home owner about default on his payment. | | | | properties are also a good opportunity to purchase |
| Investors can find property at the cheapest rate at this | | | | foreclosures for sale as the bank is in a hurry to get |
| stage. Further damage to the credit rating of the home | | | | rid of its 'non performing asset". Thus at each stage of |
| owner can be avoided and the property can be | | | | foreclosure, there are numerous opportunities for |
| transferred to the buyer at a mutually agreed upon | | | | obtaining foreclosures for sale. Banks can be |
| rate. The best leads to learn about properties at this | | | | contacted directly or online listings can be found |
| stage are attorneys, friends and acquaintances as well | | | | through genuine foreclosure listings at this stage. |
| as real estate agents. | | | | |