Real Estate Business – Foreclosure

The well known foreclosure phenomenon is once again affecting US as result of the worldwide financial crisis. Many real estate property owners were obliged to move out from their properties as they were seized by Government authorities or banks because their lack of payment. Foreclosure can be applied by either Government authorities or banks, depending on the situation.Foreclosure phenomenon appears only when the imposed taxes are not paid when they should have been. Then it is the duty of legal authorities to act . Seized real estate properties are sold after a short period of time, giving the owner the possibility of paying his taxes .This process is not something pleasant for lender or borrower, because they both loose, but the most affected is the borrower, for having to move out from the estate property. After that his real estate property will participate to a real estate auction, and the price may be even under the real estate value causing the lender’s lost. The highest bid wins.Investment in such real estate properties is perfect for the buyer, because as previously said the price will be cheaper form 20 up o even 35% of the original price.Before the legal transaction, the buyer gets the right to inspect the foreclosed real estate property, to check if all documents are in order, and if the foreclosure itself is legal from all points of view. Sometimes even legal authorities, may do some mistakes and put the property in the auction process earlier and even if the new buyer had won the bidding process, the previous owner may pay the taxes and pretend to get his property back, so imagine the entire mess.Today the buying process, in 60% of the cases, takes place on the Internet. Before jumping into a bidding competition pay extra attention to the following things: make sure the site is being daily updated, check if the site is certified, make sure you are dealing with real people, not bots, inspect the real estate property first, do not let yourself impressed by online pictures because they can be fake.I agree that , most certified websites guarantee 100% satisfaction for the buyer and they put copies of all legal documents at buyer’s disposal as well. They also contain real estate property listings which are being updated every 3-4 weeks. They also provide information about the entire foreclosure process , guarantee through documents that the “second chance period” for the previous owner has ended, so you are free to participate to the bidding process. Of course not all banks allow a “second chance period” for the previous real estate owner, and once the house is foreclosed, if you want to get it back you have to participate to the bidding process.