FORECLOSURE » Prevent Foreclosures

As a compassionate human being, you have mixed feelings about purchasing a foreclosed home. Like any purchasing situation, there are pros and cons to buying a foreclosed property and all should be weighted equally so you can come up with a decision that you feel most comfortable in making.

Foreclosed homes sold through either a Sheriff or Public Trustees Sale are amazing ways to get bargain basement prices on properties. For example, in Los Angeles (90046) a 2 bed 2-bath condo that was valued at $663,000 was recently sold at action for about half that price. But before considering that kind of bargain shopping, there are some realities that need to be addressed.

Foreclosed homes are properties that were seized by the bank because of unpaid mortgage bills or even for unpaid back taxes. The previous owners were probably not pleased about losing their home and may have stripped their property of everything of value (such as appliances, hardware and copper piping) before leaving. Homes sold at public auction are typically sold as is and there may be back taxes due on the property. Because of these issues, the biggest real estate discounts can be found.

REO or Real Estate Owned properties are those bits of real estate that reverted to bank ownership. Before the bank can sell the property they will do the necessary maintenance to bring the space up to code as well as clean up all the taxes due on the title. The discounts are not as steep as those homes sold at public auction.

The upsides to buying foreclosed homes are twofold. Not only can you afford a home that was previously out of your budget, but also you will be helping the community it is situated in. A foreclosed home brings down the property value of the neighborhood in which it is based. When they are sold the neighbors will all sigh a breath of relief.

The cons of buying a foreclosed home is not only that you should be aware of as is state of the property, but you know that the people generally left the house against their will. If you can look at the bigger picture of what you are doing for yourself, the community and the economy at large, than you should by a foreclosed home.

The foreclosure process does not happen in the blink of an eye. It is actually a process that can take several months to complete. Although the exact time frame differs from state to state there are some federal rules about how many payments you miss before foreclosure becomes imminent.

• Missed Payment 1- your mortgage holder will notify you that your payment is delinquent
• Missed Payment 2- your lender will get more aggressive about contacting you about your missed payments, most probably on the phone. Take their phone call, as you may be able to negotiate a solution yourself
• Missed Payment 3- the lender will send you a letter with the total amount pass due and you will receive your official 30 day warning shot to pay up. If you ignore this notice to accelerate (aka demand letter) the wheels of foreclosure may start moving
• Missed Payment 4- your time is coming near an end and if you do not pay up the amount pass due you will be passed onto the legal team of your lender

If at that point you have not taken any steps to negotiate payments or paid of your debt a public trustee's sale is looming on the horizon. You can still pay off your debt by the time of the sale (which is the official foreclosure) if not you will become another grim statistic.

During any of the missed payments you should contact a HUD housing counselor as they can help you navigate the whole process. In many cases they can also help you avoid the unpleasant situation altogether. No one wants to loose their home, as it is the biggest sense of security American?s can purchase for them. Additionally foreclosure can wreak havoc on your credit rating, making any future loans even more challenging to secure.

Desperate times call for desperate measures and those fearful of loosing their homes to foreclosure are certainly feeling the breath of desperation being expelled from their lungs on a daily basis. If you are feeling the panic and want to contact a housing counselor to help you with foreclosure,...

Power of sale in a foreclosure proceeding results when a homeowner defaults on a loan and the mortgage lender sells the property to recoup financial losses. This form of sale is different than a judicial sale in that courts are not involved in the process. Some feel it is a quicker way to...

When a homeowner defaults on a loan and their home ends up in foreclosure , the way that the lender takes back the home is typically through a judicial sale. Basically, this means that the sale of the mortgage property is supervised by the court. There are specific processes involved in this...

If foreclosure has ever been a part of your experience then in addition to affecting your home, you may have wondered if it could affect your credit history the answer is yes. The information that can show up on one of the three credit bureau reports can vary, but its good to know that theres a...

The foreclosure crisis was on the menu on Wednesday as President Obama served up a plan to help at-risk homeowners modify their mortgages. The plan comes only one month after a recent study released by RealtyTrac revealed that the housing market saw a 57% increase in foreclosures as compared to...

The writing is on the wall and it is spelling out a grim future for you and your home. Being behind on your mortgage payments has finally caught up with you and a slew of documents, including a notice of default filed by the trustee, at the county recorders office, has just made it to your...

A preforeclosure is an action that takes place where public notice is given before the start of a foreclosure sale on a property. This process occurs to give those who might be interested in purchasing the property an opportunity to get their finances together before the auction occurs. To learn...

If youre wondering whether your retirement savings are in jeopardy if you modify a loan or go through a foreclosure, there is a possibility it could happen. With loan modifications jumping 50% according to the FHFA, along with 1 in 466 U.S. homes in threat of foreclosure according to a recent...