Property Q&A in Milford>Question Details

ltoigo, Home Buyer in Milford, CT

I am currently selling my home but interested to understand how foreclosures work in order to purchase them?

Asked by ltoigo, Milford, CT Wed Dec 14, 2011

Will this home go to auction?? It is right in the area where I live now where we want to stay and are looking for bigger. How does this work with the foreclosures you have listed. Do they just go to auction or would the bank put it for sale? Thanks- Laurissa

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The foreclosure process occurs when a borrower cannot pay and has not paid on his/her note. Pre-foreclosure as in this particular property, means that the lender has started foreclosure proceedings aka Lis Pendens. The owner can still get up to date and stop the foreclosure action. If not, the lender will continue with the foreclosure action and after a certain amount of time usually about 3 -6 months will evict the borrower and hold an auction. This auction is usually just in order for the lender to take possession of the property and purchase the property for the amount that is owed. If you are interested in putting in a bid once it comes up for auction, you would have to contact the attorneys who are the trustees for the bank for details.. Most lenders will require a considerable sum to get in on the auction, and should you win the auction, you would be required to put a substantial amount down after the auction and be able to close within 30 days. Remember, in this scenario, you are most likely buying the property sight unseen, and you will be buying it as-is, there is no recourse.
Typically though, once the bank has posession.they will determine the value by requesting a REALTOR go out and do a Broker Price OPinion (BPO) and then will list the property with a REALTOR who puts it on the mulitple Listing Services (MLS). In most cases, you are buying the property as-is, and any inspeciton is for your information only, there will be no sellers disclosure, and most likely the lender will do no repairs to the property.. Remember, a person lost their home to foreclosure and may not be happy about it. The previous owner or vandals may distroy the house or remove copper pipes etc . Most foreclosures will not qualify for FHA financing either. If you can find a Homepath foreclosure property, that would be your best bet. Homepath foreclosures are usually not in bad shape, and are freshly painted, new carpet and in most cases a Home Warranty. Going back to the particular property you inquired about, it is in pre-foreclosure, again which means the owner may be 2 to 3 months behind, but could in all likelyhood get caught up and the Lis Pendens is dropped. However, keep an eye on it, it could take quiet sometime before it is offered for sale if it gets that far. You should hire a REALTOR to work for you and provide you with good deals. Also keep in mind, if it sounds too good to be true it probably is..... Be very careful and make sure you work through a REALTOR as your buyers agent, it costs you nothing, as the seller is usually responsible for paying commissions.
Best of luck to you.....
0 votes Thank Flag Link Wed Dec 14, 2011
Hi, if the bank just started foreclosure, they do not own it yet to sell. I can try to do some research to see which bank holds the mortgage but it would be very helpful if you can find out the house number and/or name of the owners. Julie Lucia, Realtor, Showcase Realty 203-578-5631;
0 votes Thank Flag Link Wed Dec 14, 2011
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