According to Redfin.com, “a foreclosed home is one in which the owner is unable to make his mortgage loan payments and the bank repossessed the home.”
Some questions about foreclosures:
- What are some reasons why sellers go into foreclosure?
- Loss of job, divorce, excessive debt, etc.
- Are foreclosure proceedings the same everywhere?
- No, they can vary state-to-state.
- Is a foreclosure the same as a short sale?
- No. A home under short sale is not bank-owned and the seller negotiates a payoff with the bank that has lent money to them.
Interested In Seeing North Atlanta Georgia Foreclosures For Sale?
- Are there any alternatives to foreclosures?
- “Yes. You may qualify for a number of alternatives to the foreclosure process, including special forbearance, in which your lender may be able to arrange a repayment plan based on your financial situation, and may even provide for a temporary reduction or suspension of your payments.” (www.realestate.findlaw.com)
- How does choice of neighborhood affect foreclosure investments?
- “Clients looking for a good investment should generally avoid neighborhoods overrun with foreclosures, particularly newer subdivisions in overbuilt exurban areas. Investors will be tempted to buy foreclosures in these areas because they offer the steepest discounts—but they also carry the most risk of further depreciation. Look in well established neighborhoods with good schools and transportation. If you’re in a market where prices are still falling, encourage your clients to factor falling prices into any offer they submit on a foreclosed property.” (www.realtormag.realtor.org)
Benefits of purchasing a foreclosure:
- Typically offered at a low price
- Negotiations can often be easier
- REO properties are usually cleared of any liens
- Previous owner is usually evicted and the property is vacant
Cons of purchasing a foreclosure:
- The bank may initially require some earnest money
- Can have additional paperwork
- Property is considered sold “as-is”
- The bank cannot provide the property history
For more info on the real estate market, check out www.NorthAtlantaHomeTeam.com!