I would recommend you have an attorney review title on any foreclosure. We have seen some interesting issues come up. Good luck!
An NOD ( Notice of default) is filed by the lender with the county recorder after the home owner has missed payments. Each bank has a different timeframe on this.
The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure, via a short sale foreclosure,deed-in-lieu, or by buying back the property at the public auction. Properties repossessed by the lender are also known as bank-owned or REO properties (Real Estate Owned by the lender).
The lender who is now known as the seller does not have too dislcose much to the buyer because (lender) has not occupied the property before, therefore they are known as EXEMPT. Find a REALTOR you trust, pehaps a referral from a good friend. Research the property and make sure you are with the home inspector when he conducts the inspection. Then comes the Bank Addendum which states all the terms and conditions which are often different than the RPA (residential purchase agreement). Timeframes are shorter ie: financing terms, inspections, earnest deposits and per diem charges if you don't close escrow on time. You really should have loan commitment with your lender as well. That's why it's very important to have an experiende REALTOR and one you trust.
Best of luck in your search!
2. Upon qualifications contact a Realtor
3. Based on your specifications and lender approval agent will submit a sales offer on properties you prefer
4. Wait determine if your sales offer is accepted proceed to closing
NOTE: Not all foreclosures are below market value, these types of transactions have drama up not due to agents HOW banks do business. Anticipate up to 60 days or more to close recommend you may have submitted a sales offer best keep searching
I found a blog post on trulia voices (see link below) that i think can provide you with the information you need
i hope it helps!
You should consult with a Realtor who has done specifically these kind of transactions before. Time is of essence in foreclosures, bidding and preparing the paperwork. If you see any foreclosure property in your area contact with the listing agent, I am sure they will be happy to help you in this process.
Best Wishes and Good luck.
Coldwell Banker Jim Stewart Realtors
Waco Tx 76710
A foreclosure occurs when a property owner cannot make principal and/or interest payments on his/her loan, typically leading to the property being seized and sold.
Stages of Foreclosure
The foreclosure process is not very difficult to understand. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure.
After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default (NOD). At the County RecorderÂ’s Office. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off.
If the default isn't corrected (the loan must be brought current) within three months, a foreclosure sale date is established. The homeowner will receive a Notice of Sale, and this notice will also be posted on the property. In addition, the Notice of Sale is recorded at the County RecorderÂ’s Office in the county where the property is located. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period.
The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are designated in the Notice of Sale. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The winner of the auction will then receive the trusteeÂ’s deed to the property.
Jerry A. Lorenz
Cell: 440 724 4402
Check Out My Real Estate Blog: http://jerrysrealestateblog.blogspot.com/