Foreclosure Trends

Charlotte Foreclosure Attorney - Zellers Rudd asked:


How much time do I have to move after my home has been sold at a foreclosure sale?

After the foreclosure sale there is a 10 day upset bid period before the sale becomes final. After that time has passed and there have been no upset bids the sale then becomes final. At that point the third party buyer, the lender, or the foreclosure trustee who purchases the property or represents the purchaser of the property at the foreclosure sale will then send you a letter, probably via certified mail, stating that you have 10 days to voluntarily vacate the home. Once the ten days period in the letter has expired the third party buyer or lender will apply to the Clerk of Superior Court for an Order for Possession. If the Clerk allows the Order for Possession that order will direct the sheriff to remove all occupants and their personal property from the premises within 7 days of receipt.

So, in general you really don’t have much time, this eviction process is much shorter than your typical landlord-tenant eviction. If you need a week or two to transition to another home or apartment contact the trustee or the buyer (contact the party that sends the ten day notice letter) and explain your situation. Most often they will give you a limited time to move you and your possessions from the residence. If you do not make the effort to contact them, they will more than likely move the application for an Order for Possession along as swiftly as possible.

For more information on foreclosure and foreclosure alternatives, please visit:  http://zellersrudd.com/areas_of_practice/charlotte_foreclosure_alternatives.aspx 



STUART

Otto Ruebsamen asked:


FHA foreclosures have been steadily rising in the last three years and the number of new homes getting on the selling block keeps coming by the day. A dominant market is taking a new form today and that is FHA foreclosures.

Real estate market forces have pushed the price tags of homes down nationwide but the number of FHA foreclosures has continued a sustained increase in rate up to this point.  Market analysts are even predicting a new wave of foreclosures.  This time, it will hit the prime mortgage sector.

At face value, this means more homes priced cheaper will be available for potential homeowners as mortgage lenders are pressed to dispose of FHA foreclosures to ease their liquidity problems.  The prospects seem to be attractive for those with sufficient equity.

Words of Caution on FHA Foreclosures

Buyers of FHA foreclosures should be wary with their buying of homes from the FHA foreclosure listing.  As would be expected, most of the foreclosure homes for sale are results of default of sub-prime mortgage loans.  In this case, a lot of these real estate properties have not sufficiently built on its equity from payment of mortgage from the original homeowners.  You might end up with a home with a price tag that is almost equal to its actual value or at best with only 10% off from the original cost.

Buyers of FHA foreclosures are forewarned of these types of foreclosure homes for sale which investment experts term as “land mines.”

Buyers of FHA foreclosures are strongly advised to do a thorough title search.  Study the structure of mortgage on the foreclosure homes for sale.  In some instances, there might be a second mortgage on top of the principal mortgage.

These types of FHA foreclosures are not the “best buys” we are looking for.

Another aspect to consider when buying foreclosure homes for sale is that the real estate properties are being sold “as is.” It is then imperative on your part to factor in at least an additional 25% on the price tag of the property you are buying.  This amount should cover all the unforeseen costs involving repairs and defects on the home which may not be apparent on initial inspection.  You don’t want to end up spending the 30% savings you thought you got from buying FHA foreclosures for repairs and defects you only discover after you move in to your new home.

Another practical tip for would-be buyers is to avoid foreclosure homes for sale that were already on the listing for quite a while already.  On inspection you would most likely find out that these homes have significantly deteriorated as most mortgage lenders are hard pressed to maintain an even increasing number of foreclosed properties.

A final reminder to buyers of foreclosed homes; most of the FHA foreclosures were originally owned by people who would have surely gone into serious financial troubles.  With this situation in mind, expect these former owners of not being able to have done some decent maintenance and care of the now foreclosed property.

Expect to face some serious house repair of practically all aspects of the entire property.  Don’t be surprised to find some punched holes in doors and wall panels courtesy of the former owners of the home.

Once these are sufficiently covered by the would-be buyer, then it is safe to move on to the next phase, and that is to commence the buying of FHA foreclosures.



ABE

DC Fawcett asked:


Foreclosure web sites are of great help in giving you the information you are searching for to find a great real estate investment in this tough market. Foreclosure listings on these web sites can cover all kinds of distressed properties for sale announcements such as foreclosure auctions, foreclosed homes, pre-foreclosures, bank home sales, foreclosures for sale and more. If you are interested in getting a steady diet of foreclosure type properties to cross your desk, then this is certainly one way to go.

Time is of the essence when purchasing foreclosures, so sign make sure that any foreclosure website is up to date. Many offer 7 day trials that let you start searching foreclosure listings right away. Other foreclosure web sites review the latest list of home foreclosures but may not be as timely as those that get their information directly from courthouse records.

Foreclosure

Foreclosure homes are properties that have been foreclosed by a mortgage lender and are now for sale through foreclosure auction. For real estate investors, however, this can be a tremendous opportunity to pick up properties for pennies on the dollar. Unfortunately, foreclosures are expected to increase as interest rates rise and monthly payments on short-term variable rate and interest-only loans begin to come due. By using the services of a foreclosure web site, you can really stay on top of the market and find only the absolute best deals.

Properties & Property Information

Very detailed information about the foreclosure properties can really be at your fingertips. Imaging knowing how much was owed, what the person paid, when the bank is scheduled to foreclose and a wealth of other information… In this case, information is key to your success.

When you test out a foreclosure website, let me give you a tip. Contact some people on their list and make sure that the properties are truly active….. If not, you know that you are getting stale, rehashed material. As an interesting tidbit, we did find was that for zip code searches it appeared that RealtyTrac had the best number of properties and they seem to have current information.

Have You Considered Dealing Directly With The Bank?

Bank foreclosures must be purchased from a bank through the bank foreclosure REO department. One source of these properties is when banks are foreclosing upon builders who have not been able to sell their “spec” home. If you are looking for a newer type property, this can be an excellent way to find the deal of a lifetime. On some foreclosure web sites, they have REO information that explains the bank foreclosure list process and how one can bid on homes at a foreclosure sale.

So, as a real estate investor, please realize that you are dealing with truly unique times right now where you can build an unbelievable portfolio. By using foreclosure web sites and their listings, you can get access to all kinds of distressed properties for sale at literally pennies on the dollar. To begin your real estate activities, you will obviously want to use the services of a foreclosure website in your future.



MOHAMMED