Foreclosure Mortgage Lenders

Do you want to “Flip that House”? Maybe you are one of the many potential investors in the market that is looking to make money from the foreclosed housing market. Choosing one of the foreclosure mortgage lenders to work with if you are planning to fix up and sell the property, or if you would like to live in it, could be a good investment. Either choice is a chance to make a good deal.

When a home goes into foreclosure the lender needs to sell it as soon as possible. Not only are taxes due on the home, but the bank is holding a piece of real estate that is not generating any income. The sooner the foreclosed home is sold, the better off the lender is.

This is where you, the buyer, enter the picture. There are actually four stages in the foreclosure process. It is important to know each stage of the process so will know what to do in each part.

In the first stage of foreclosure, which is actually pre-foreclosure, the lender has given notice of action to the buyer because the buyer has missed some payments, and a lump sum is due. At this point some owners begin looking for someone to buy the house, usually within the first 90 days. These sellers are desperate, and if they can sell the house it will help their credit. Dealing with a lender that has done this before is important because time is of the essence.

Stage two is after the 90 day warning. A notice of trustee sale must be put in the paper and then lender has to do quite a bit of paperwork. Basically this is the time period that you would want to find out if the home is a good deal or not. A date will be set for an auction, and there will be plenty of competition.

The third stage is when the auction takes place. This will be on the 120^th day. This is held in a public place like the courthouse steps. There will be an auctioneer present and you will need to show cash or a cashiers check to prove that you can actually buy the property. If the house does not sell at this point, it becomes bank property.

On day 121 the house either had no bidders, or the bank actually had a representative present to outbid the other bidders. The third scenario is if no one bids the opening bid, then the property automatically goes to the lender or bank. These houses usually go on “foreclosure lists” that are distributed or sold.

Because foreclosure mortgage lenders deal with people that have had the experience of dealing with property owners that don’t pay they will be stricter than the average lender. You will also see listings of distress sales, especially in areas where any type of disaster has struck and people may have abandoned their home. Do your homework and you may be able to find the dream house you are looking for!