How Foreclosures Work
Ask any buyer and she'll tell you that the best deals are found in foreclosure sales, either before they go to public sale or on the courthouse steps. But that's not necessarily true. In fact, most of the time, the best deals are those that aren't advertised as such. They're the sellers who haven't quite figured out yet that they really need to sell at a big discount until somebody points it out to them. But buyers today are not asking questions about those types of transactions. They clamor for more information about buying foreclosures.
So, if you're dead set on pursing foreclosures, you should first learn how to do it by the book. It's not a matter of: "Here's some cash, sign this deed." Most states have enacted laws about how to handle foreclosures, and sellers are entitled to disclosures. A lot of buyers got in over their heads the last few years through the use of exotic financing, though, so I am predicting we'll be seeing an uptick in foreclosures and / or short sales for several years yet to come . . . read more about How Foreclosures Work.
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Comments
You mentioned about living practically free after 4 months to 1 year after foreclosure. How will that happen?
You can stay in a home DURING a foreclosure, not after. Once a Notice of Default is filed, and presuming that you have stopped making mortgage payments, you have about 4 months in CA before you need to move. In states where a mortgage is used, sometimes the right of redemption period is 12 months. But after the foreclosure is final, you will be evicted by the lender if you have not yet moved. That eviction process can take a few weeks or more, but you really don’t want an eviction on your record on top of a foreclosure.
Great article. I haven’t heard anyone cover the topic of how long the individual has before they have to leave their home.
There are so many foreclosures at the moment here in Orlando. The orlando real estate market is going crazy with foreclosures. Besides luxury homes, foreclosures are the only thing selling.
Excellent article. Do you have any information on which states fall under these categories?