Last year was an out and out bummer if you wanted to find yourself a real estate bargain.

As Dian Hymer says, writing for Boston.com,the bargainless real estate market of a year ago was due in large measure to the fact that inventories of homes for sale reached record low levels.

But what a difference 12 looooong months can make. Buyers today, says Hymer, “have the luxury of choice.”

Still, Hymer’s posting reminds us that there are certain things we can do to make the real estate buying experience that much more enjoyable, and more important, that much more of a bargain.

For one thing, Hymer says, “In order to find a good deal, you need to be able to identify a fairly priced property when you see it.”   Okay, you ask, “How do I do that?” Easy, says Hymer in this primer on how to find a real estate bargain: You MUST learn everything you can about home values in the area you are looking in.

One other keen way to sort of create your own real estate bargain, she says, is “to research the listings that have been on the market a while without any offers.”

Makes sense,doesn’t it!

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Tags: bargain, buyers, deal, estate, market, real, sale

What is a Foreclosure?

A foreclosure occurs when a property owner cannot make principal and/or interest payments on his/her loan, typically leading to the property being seized and sold.

How does a foreclosure occur?

The foreclosure process is not very difficult to understand. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure.

After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default (NOD). At the County Recorder’s Office. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off.

If the default isn’t corrected (the loan must be brought current) within three months, a foreclosure sale date is established. The homeowner will receive a Notice of Sale, and this notice will also be posted on the property. In addition, the Notice of Sale is recorded at the County Recorder’s Office in the county where the property is located. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period.

The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are designated in the Notice of Sale. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The winner of the auction will then receive the trustee’s deed to the property.

What Happens at the Foreclosure Auction?

At auction, an opening bid on the property is set by the foreclosing lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. If there are no bids higher than the opening bid, the property will be purchased by the attorney conducting the sale, for the lender.

If this occurs, and the opening bid is not met, the property is deemed a REO or Real Estate Owned. This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender.

When you purchase property at a foreclosure sale, all junior liens other than property taxes are wiped out. Priority of liens is determined by the date of recording. When you purchase a REO aka. Bank REO, you will typically receive the property with a clean title.

Learn How to Avoid Foreclosure from HUD.

Discuss Foreclosures at our:

• General Foreclosure Talk Forum

• REO Forum

Find Foreclosed Properties:

• Bank REO Listings
• Pre-Foreclosures
• Government Foreclosures
• Asset Management REO

Tags: auction, bank, default, foreclosure, interest, lien, mortgage, NOD, noticeofsale, principal, REO, sale, trustee