mortagesandforeclosures

by Angela Kleinertski

Buying of properties that have been through the foreclosure process can occur in two different ways. First, the properties can be sold at the foreclosure auction with the buyer being someone other than the original lender. Another reason was, if there are no bidders at the auction, the lender will get the home back as the high bidder for $100 over the amount of the final judgment in the court action.

If one purchases the property at an auction he/she will be buying a property that may have major deficiencies with its title, structural issues, property taxes due, illegal structures on the property, un-permitted work, or other issues that can cause the bidder to be sorry later he bought the home. If you intend to bid on a foreclosure property at auction, I suggest you try and see inside the property before the sale

This does not implore that breaking and entering is the answer, but it is by contacting the homeowner and asking to buy the property from him, would be a best option. If he has moved away, try getting permission from the homeowner if you can track him down and go inside with some type of permission letter in your pocket in case the police are called.

Check on public records or ask an assistant from a reliable person for the job, like an attorney. He can check records for you do an open permit and apply code violation search in just a week but ay also depend with your local city.

Other cities will let you pay or make you wait for more than a month. While this is already in the process, he should do a personal home inspection, if he has a permit to physically check the property, if no permits just ask him to check on the external structure of the house, see if he can notice any faults with the building structure.

Another way to purchase a home is to purchase an REO home. This is a property that has been foreclosed and owned by bank. Most of the time a lender is forced to take a property to the auction in order to eradicate taxes due against the property, if these liens were not paid the , the lender will assume in paying taxes of the property that are due.

The big difference in the lender getting the REO and reselling it is that the lender must bring any delinquent property taxes current for the buyer. The lender must also provide "fee simple" or "free-and-clear" title to the buyer. The process of clearing title deficiencies can sometimes be very expensive so buying REO's eliminates these related issues.

When purchasing a property, an REO property is much better than purchasing a property at a foreclosure auction. There are exceptions but the buyer must be very aware that there are hidden or other issues can make the cheap purchase more expensive than a new home. So as always, do your homework and "buyer beware".

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