Real Estate Foreclosure

The good news for first time home buyers is that as long as they are willing to out up with a maybe “not quite perfect” real estate foreclosure property, The real state foreclosure people looking for their first property and he looking to build a large real state foreclosure there is the possibility of developing what is referred to as “sweat equity”. Sweat simply equity, or increased value, created by the willingness of a new owner to do the clean-up and repairs many distressed properties require. Each state in the United States has its own procedures for how a lender can foreclose on a loan in default. These procedures are determined by state law and although the procedures and timeframes can vary widely, there are common characteristics to all of them. The biggest difference in the foreclosure process between states is the use of either judicial or non-judicial foreclosure, which simply means the foreclosure will be handled through the courts or handled outside the courts by advertisement and publication (non-judicial). There are also three phases to the foreclosure process that need to be discussed, the default phase, the auction phase and the REO (foreclosure) phase. Most everyone will agree real estate markets that have had huge price increases for many years in a row cannot keep rising in price at the same pace as in the past. Other real estate markets have seen appreciation, but at a more moderate pace. A slowly appreciating market is far less likely to suffer a “bubble burst” than a market that has seen huge gains in just a few years time Understanding the type of foreclosure process, Foreclosures occur when payments aren’t on a loan that is secured by real estate, and the lender takes the security (real estate) because those payments have not been made. Understanding the process, and what steps you need to take at different parts of the process, is essential to successful investing in distressed property.