Question : What are the different stages of foreclosure, and what do they mean?
I'm interested in buying a home in foreclosure, but I don't know what the different stages are or what they mean. I've seen "notice of default", "real estate owned", "notice of foreclosure sale", and "pre-foreclosure." Can someone please tell me the stages (from beginning to end) and what that means to me as the potential buyer? Thanks.
- asked by juicyfruit
All Answers:
Answer #1
If it is going to the sheriff's auction, it ispretty much a done deal. Once you purchase thehome, everything in it is yours. You must becareful to do your research to determine if thereare any liens on the property...because if youpurchase the house, you are now responsible forany liens owed. Pay for a title search...it couldsave you some big bucks in the long run.
- answered by mr_tasty_phlegm
Answer #2
NOtice of defualt is the first step toforeclusure. That's the lender telling theborrower that he missed a few payments - and thatforeclosure is coming.Real estate owned (REO) isthe bank owning a foreclosed house.Pre forclosureis the best time to buy the house. You can oftennegotiate with the bank at this time and get agood deal. Remember, good terms are better than agood price.Notice of foreclosure sale is whenthere is usually an auction after the house wasforeclosed and the bank is trying to sell it tothe highest bidder. Don't try to buy here - therewill be tons of people at a foreclosure sale andthey call came with mega bucks to plop down on thehouse. Also they are usually all cash deals.Goodluck - and follow the pre foreclosure route. Theothers might work for you, but only rarely.As aninvestor I will tell you that if you are skingthis question, you really are not ready to invest. Read up - learn more and then go for it. Goodluck
- answered by wonderingunhappily
Answer #3
Sure... Well, you receive a notice of default whenthe bank says you have missed payment long enough. Normally the home will be in pre-foreclosure foraround 3 months after the NOD was issued. Thenotice of the foreclosure sale occurs somewhere inthat 3-month period. Then there is the foreclosuresale- an auction. If nobody purchases the home atauction or at a trustee sale then the bank takespossession of the home making it "bank owned" realestate.Good luck. Here's a great website to helpyou find the perfect home... in any stage offoreclosure.
http://www.foreclosure.com
- answered by lu_candid
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