foreclosure property

Community Questions: Foreclosure papers filed

QUESTION:
Keith asks….I want to buy a house you have filed foreclosure papers on.  What is the procedure?

ANSWER:
Thanks for your question.  Unfortunately, we at The Bank Foreclosure Guide don’t foreclosure on any homes.  We are merely an information resource for people looking for information about buying foreclosed properties.  So, step one will be to check the local foreclosure filing to find out who has filed the foreclosure paperwork.  They are likely to become the new owner of the property.

The foreclosure process often starts in many states with a Notice of Default.  During this timeframe the bank is going through the legally necessary process to take ownership of a property due to an unpaid portion of a mortgage loan that isn’t being paid (is in default).  Its unlikely that that the bank owner is going to sell the property as this point in the process.  Its generally too early since the ownership of the property hasn’t yet transferred to the bank.

After the bank completes the foreclosure, a process that can take several months to several years depending on the state, the bank owner will remove the former owner (eviction) and prepare the home for sale.  Generally, banks list their homes on the open market with a real estate agent.  This allows for the widest exposure and usually the best price for the home.  It would be unusual for a bank to make a “side deal” and sell a home without going to market.

That being said, we are seeing some homes go to auction while they are still occupied by the former owner.  Generally, buyers have to buy these homes without seeing the interior and become responsible for evicting the current occupants.  There is risk involved in purchasing a home like this but if you are interested, read more about auctions for homes at this link.

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