There are number of steps involved when looking to a buy a house in the US, these are as follows:
1. The buyer will make an offer to the seller for the property, your offer will usually require you to also provide the following:
â€¢ A Check Deposit, also known as an â€˜Earnest Money Depositâ€™
â€¢ A Pre-Approval Letter from your lender (The Bank)
â€¢ A Proof of Funds Available (Bank Statement)
â€¢ Identification Documents
It is normal practice for both the buyer and the seller to have a real estate agent or broker working on their behalf; the offer for purchase will be made by the buyerâ€™s broker to the sellerâ€™s broker.
2. If the seller accepts the buyers offer to purchase the property, the buyerâ€™s broker will then deposit the check deposit into an escrow account.
3. Once the money has been deposited into the escrow account, the buyer will then make arrangements to have the property inspected for such things as structural damage, termite infestations, roof damage etc., etc. Once the buyer is satisfied that the property meets their approval they can remove any contingencies to the offer. It is at this stage that the â€˜Earnest Money Depositâ€™ becomes non-refundable.
4. The buyer will now need make a loan application to his bank or mortgage company for the balance of the purchase price. Before approving the loan application, the lender will perform an appraisal and valuation of the property; if they are satisfied with the property then the loan underwriter will approve the loan.
5. The buyer will then sign all the necessary paperwork in front of a notary public witness at the escrow company. This will include such documents as the loan application from the bank as well as documents from the real estate agents and the seller. The loan will then get transferred by the bank, the seller will pay off any monies they currently owe to their own lender and then the seller will transfer the property ownership deeds to the buyer. This grant deed will then be recorded by the County Clerk Recorder service and the buyer becomes the legal owner of the property.
Web Reference : http://www.globenetrealty.com... more
With the mortgage settlement agreement, lenders are encouraging short sales over foreclosure and are even offering cash incentives for struggling homeowners. As a result, more homeowners and lenders are agreeing to a short sale as opposed to foreclosure, which has contributed to the rise of short sale properties on the market.
To learn about why short sales are a good investment and why banks prefer them over foreclosure, you can check out an article I wrote on this entitled "Looking for Real Estate Deals? Consider Short Sales"
Simon Campbell - http://www.bankforeclosuressale.com... more
I donâ€™t know the full facts of your case but the short answer is yes, in California you can get a court order to stop a scheduled Trustee's sale. But in order to do so, you need to file a lawsuit. And in order to file a lawsuit you need ligitimate legal grounds where the facts show that the bank proceeded illegally, violated your rights, etc.
If the complaint alleges legitimate grounds which show you might win at trial, the court can issue a Temporary Restraining Order within days of filing. But approx 2 weeks later, youâ€™ll have to convince the judge your lawsuit has real merit to turn that TRO into a Preliminary Injunction to stop the sale until the lawsuit is litigated or settled. The issues can be complex, the litigation expensive (even just the filing fees), so you need to determine your ultimate goal & the cost/benefit to both you and the bank. You will not succeed by simply filing a frivolous lawsuit.
Naturally this does not constitute legal advice but is merely posted as general information. Call me if you have any questions â€¦
Nils S. Rudovics
Without Prejudice UCC 1-207
Attorney at Law - California License # 109753
Real Estate Broker - California DRE License # 01265091
323-850-Nils (6457)... more
Thank you for your question about unusually low foreclosure price listings. Please be advised that if it looks to good to be true it probably is. Many times an unusually low foreclosure price represents the amount the homeowner is behind on their mortgage or some other lien on the property.
RealtyTrac and Foreclosure Radar .com publish loan and lien information about properties in judicial foreclosure. Therefore, if you saw an unusually low price on a RealtyTrac listing the amount probably represents a default loan or lien.... more