Foreclosure Properties in Northwest Georgia and Chattanooga TN
A foreclosure property is a piece of real estate that is sold off by a mortgage lender to pay off a defaulted mortgage loan. All foreclosures result in a public auction that allows the lender to sell the property. In this situation, anybody can buy the property. Northwest Georgia and Greater Chattanooga real estate have many foreclosure properties at any given time.
Alternatively, you can buy a foreclosure property in Chattanooga from a bank after it has been purchased by the bank at the auction. The biggest advantage of foreclosure properties is their cheap price. They tend to come at below market-level prices which makes them desirable to a lot of people. Also, a lot of them are usually sold in good conditions. Therefore, buyers do not have to spend a lot on repairing them.
Despite the awesome benefits of acquiring foreclosure properties, they have certain demerits. Foremost, the processes that come before you can buy a foreclosed property require lots of paperwork. Hence, buying foreclosure properties can occur over an extended period. Other demerits include the possibility of hidden charges as well as the high competitiveness of the market.
Types and Stages of Foreclosure
There are different stages and kinds of foreclosure. They include:
When a property is in pre-foreclosure, it means that the mortgage lender has informed the borrowers about their default. This, however, is before the property gets auctioned.
• Short Sales
Short sales happen when the lender is ready to accept an amount that is less than what is owed on a mortgage for the property. This means that it is not necessary for a borrower to be in default of the mortgage payments before the lender can agree to a short sale. The only condition required is that they can prove a form of financial hardship.
• Sheriff’s Sale and Trustee’s Sale
Usually, under a standard mortgage document in some states, the lender is required to file a foreclosure lawsuit in a state court, after which the judge will order the sheriff’s department to sell the mortgaged house. This is known as a sheriff’s sale since it is the sheriff that handles the auction. This instance shows how it works in Chattanooga real estate. On the other hand, there is also the trustee’s sale which is possibly even more common than a sheriff’s sale. Unlike a sheriff’s sale, a trustee’s sale happens under a trust deed.
• Bank-Owned Properties and Government-Owned properties
There are certain properties that fail to sell at auction. Such properties automatically revert back to the bank and become real estate owned (REO) properties. On the other hand, we have some properties that are purchased with loans that are guaranteed by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). In a situation where such properties go into foreclosure, they also revert back to the government to be sold by federal agency brokers.
How to Find Foreclosed Properties
Finding a foreclosed property to buy is no more as difficult as it used to be. You can see foreclosed homes for sale in the GCAR MLS and periodicals. You can also find them through online searches, bank offices, and sites, as well as local newspapers.
Similarly, you can find foreclosed properties through agents. Although in local multiple-listing services, it might not be stated clearly if a property is being foreclosed unless you check under the property description segment.
How to Buy a Foreclosure Property
The process of buying a foreclosure property is straightforward. It includes:
• Getting pre-approved for a mortgage
Before you start thinking of buying a house at foreclosure auctions or REO listings, you need to get a mortgage.
• Find a real estate agent or mortgage broker
If you are buying a foreclosure property for the first time, it is advisable to use a real estate agency that is well experienced in REOs. A good example of this is the famous technology and international real estate franchise, Keller Williams of Greater Downtown. You might think of saving on fees by doing it yourself is the smart decision but this is not so because the long-term effect might not be favorable and only agents can save you from that.
• Buy the foreclosed property
After hiring your Chattanooga real estate agent, the next step is to buy the property. Whether you are bidding at an auction or negotiating for an REO, your agent will see you through the process after which you put an offer on the home if it suits your budget.