The Foreclosure process starts when a homeowner cannot pay the mortgage and ends when the home is resold. The three stages of Foreclosure are: Pre-Foreclosure, Auction, and REO/Bank Owned. Pre-Foreclosure is the time period a homeowner has to repay the delinquent amount of the mortgage. If a homeowner does not pay the mortgage the home is auctioned. If the bids do not meet the reserve the lien holder (bank) reclaims the property and it becomes a Bank Owned REO.
Distressed properties are generally listed on the MLS. Short Sale and Pre Foreclosure properties are usually listed by the owners through convential selling methods. REO or Bank Owned properties are generally listed through agents specializing in REO or Bank Owned properties. A good agent should be able to provide you with a current list of Distressed/Foreclosure Properties on the market.
The foreclosure process starts once you get behind on your mortgage (typically 90 days). If you are late one or two payments try to keep up that way until your circumstances change. If you have suffered a financial hardship, contact the bank immediately and ask for help. Ask them to tell you what your options are at this time. Make sure you are speaking to someone who sounds knowledgeable. Keep a journal of all your efforts and who you speak to and what day and time.
Ask yourself can you afford to keep the home? Do things have the potential to get better or much worse? If you can and want to keep the home do as Scott suggested and ask for a loan modification.
If the answer is you cannot manage the mortgage payment any more, then contact a local Realtor who has short sale experience and ask them look over your situation and see if you qualify for a short sale. They can work with you and your bank to complete this process.
This is process that takes a lot of work no matter the path you chose. So just do the next step in front of you and keep trying to better your situation. If all else fails, the bank will foreclosure on the property and your credit will be hurt and you will have to move. The foreclosure process can take a long time so do not panic but do get to work doing something.
Good luck and feel free to contact anyone directly that you feel can you help you including me. It would be much better for you to work with a local person.
The landscape on Singer Island, like most areas in northern Palm Beach County, is dotted with foreclosures. More prevalent in some of the newer condominium projects but you will see them also in the single family home market. The most important think is to clearly identify what you are looking for and be working closely with a professional RealtorÂ® who can quickly notify you of matching properties as the best foreclosure deals are typically under contract very, very quickly.
Your best bet is to interview at least three agents and select one to represent you that you know has your best interests at heart and the skills to help you clearly identify your needs and locate matching properties. Perhaps the most important skill is the ability to evaluate the current market around the home you are interested in and negotiate the best pricing and terms on your behalf. I would also recommend that you never sign a buyers broker agreement.
If you do decide to interview agents please feel free to contact me as I would be honored to be on that list.
Best of Luck,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty