The well-known phenomenon of foreclosures is hitting the United States again as a result of the global financial crisis. Many real estate owners have been forced to move out of their properties as they have been repossessed by government authorities or banks due to non-payment. Foreclosure can be enforced by government authorities or banks, depending on the situation.
The phenomenon of foreclosure appears only when the taxes imposed are not paid when they should. Then it is the duty of the legal authorities to act. Repossessed real estate is sold after a short period of time, giving the owner the ability to pay their taxes.
This process is not something pleasant for the lender or the borrower, because both lose, but the most affected is the borrower, for having to move from the farm. After that, his real estate will participate in a real estate auction, and the price may even be less than the value of the real estate, causing the lender to lose. The highest bid wins.
Investment in such real estate is perfect for the buyer, because as stated above, the price will be cheaper by 20-35% of the original price.
Before the legal transaction, the buyer has the right to inspect the foreclosed real estate, to check whether all the documents are in order and whether the foreclosure itself is legal from all points of view. Sometimes even the legal authorities can make some mistakes and put the property in the auction process earlier and even if the new buyer had won the bidding process, the previous owner can pay the taxes and claim to get his property back, so imagine the whole mess. .
Today the purchase process, in 60% of cases, is done through the Internet. Before you jump into a bidding competition, pay special attention to the following things: make sure the site is updated daily, check if the site is certified, make sure you’re dealing with real people, not bots, inspect real estate first, Do not be put off by images online because they may be fake.
I agree that most certified websites guarantee 100% buyer satisfaction and also make copies of all legal documents available to the buyer. They also contain real estate listings that are updated every 3-4 weeks. They also provide information about the entire foreclosure process, guarantee through documents that the “second chance period” for the previous owner has ended, so you are free to participate in the bidding process. Of course, not all banks allow a “second chance period” for the real estate’s previous owner, and once the house is foreclosed on, if you want to get it back, you must participate in the bidding process.