Published on Sunday, 20 March 2011
In this unstable market, there are many good deals available in the market, especially if you are thinking about buying a property. However, you need to remember a few things before considering buying a foreclosed property. Since repossessed homes are usually coming from mortgage companies, they are likely to expect to get the lump sum they have lent plus the total cost of the missed payment. Lenders don't usually like repossessing houses because they would have to go through the selling process again. An auction will probably be the best solution to convert the property into cash. Lenders avoid repossessions as mush as they can in order to save themselves from certain financial loss. Remember that lenders are only concerned about getting their money back. They are not real estate agents-they are more interested in getting the original loan amount than the interests that were accrued. Auctions are very tedious and the bidding can be stern. For these reasons and more, it is best if you don't let the property go through the repossession process before buying it yourself. More often than not, banks and lenders will make every effort to make agreements with you so they can save themselves from the hassles of repossession. Refinancing may be one of your best options. Though it may take longer or costs higher, it is still better than having no home at all.
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