Foreclosure homes or properties are bought and sold in quite a different way as compared to the regular purchase and sale. This is because of multiple level approvals required in the process. The process of foreclosure starts when the owner is not in a position to pay back the mortgage due to any reason. The beginning of the process of foreclosure is called Pre-foreclosure.
• One can buy or sell a foreclosure property with the help of real estate agency or through public auction. Buying a foreclosure property can be beneficial as the property is auctioned at market value to accelerate the process. There is not much room for negotiation as the process and approvals are taken at multiple levels. One needs to put up a fair offer to get the deal rolling. Usually mortgage would not be available on such properties and the buyer will have to pay in cash.
• Selling of property at pre-closure stage is usually carried out by the home owner or the borrower. When the property rights are still with the owner and the notice is issued by the lender, then the situation is termed as Pre-foreclosure. The owner still having the rights to the property can look for the mortgage payment options before the foreclosure. Short sale, deed in lieu, and modifications in agreement can work in this case. The pre-foreclosure process would usually last for 3 months depending on the lender’s discretion.
Real estate agents would help in making the process of buying or selling the foreclosure properties smoother and beneficial to both the parties.