In a quick nutshell, a Bank Owned foreclosure (or REO: Real Estate Owned) is a property that a borrower was unable to pay for, the bank foreclosed on the property and the bank now owns the property. Marie has transacted million of dollars in sales of homes, land and commercial properties in the Houston/Galveston has been recognized at Top Agent by Trulia in 2014 and top producer for Janke & Co Properties. Home owners facing the trouble of foreclosure must check up the power of sale clause in the mortgage bond so as to know the type of auction proceedings which will be implied for the auction of their mortgaged home.
Dan Immergluck, a professor of city and regional planning at the Georgia Institute of Technology’s College of Design, estimated in an unpublished research paper that a firm like Harbour could generate an annual return of at least 28 percent based on the way it prices homes. Working for Arbor Custom Homes has allowed me to do just that…Every day I get to find people their dream homes where they can create new memories! Often foreclosed houses are very nicely kept and are in excellent condition, other times they are not and need repairs.
Foreclosure by judicial sale, commonly called judicial foreclosure, involves the sale of the mortgaged property under the supervision of a court. These lists contain a variety of properties, from HUD and VA homes, single-family homes, condos, town homes and multi-family units to undeveloped land, and even commercial properties. Junior lienholders must buy out senior lien positions and be high bidder to gain possession of the foreclosed property with clear title. Many foreclosed homes have serious issues like cracked foundations or leaky roofs that can be quite costly to repair.
When considering a foreclosure purchase, homebuyers should be prepared to act quickly, but not be in any particular hurry to complete the sale. Given that the bank has not maintained or had first-hand knowledge of the foreclosed home prior to acquisition, there may be no record of property repairs or maintenance that would assess the true property condition. The holder of a mortgage without this clause has only two options: either to wait until all of the payments come due or convince a court to compel a sale of some parts of the property in lieu of the past due payments.
In some cases, buying a foreclosed home can also help a family to walk away from their defaulted mortgage without significant adverse affects to their credit history. Councilman Tom Hucker, who was a state delegate when the legislature passed a law giving the county this authority, said banks that own these homes are often slow to get homes on the registry in order to avoid paying transfer and property taxes.