Foreclosure is a slow and painful process of losing your home due to the lack of payment of your mortgage or back taxes. Homeowners in jeopardy of losing their homes are contacted via letters and phone calls that alert them that they are in risk of losing their home if they do not pay the bills that are past due. After a period of about 2-3 months (pending on the state the home is in) the homeowner will receive a posting on their door announcing the date of the Sheriff or Public Trustee’s Sale auctioning off their house to qualified bidders. This sale date may also publicize online or in local newspapers, those advertisements are foreclosure listings.
How to Find Foreclosure Listings
Foreclosure listings are the information provided publicly on bank owned homes and government foreclosures. Foreclosure listings are a way for those who are interested in entering the real estate game to get substantial discounts on the purchase of properties. Consumers interested in browsing and purchasing a home from a foreclosure listing should be aware that many of the properties are sold as is (meaning the previous owners stripped them of all appliances, hardware and even electrical wiring).
Purchasing a Foreclosure Property
There are typically two ways consumers can purchase foreclosed homes and taxes vary based on the way the property is purchased. If you buy a home from a foreclosure listing from a Sheriff or Public Trustee’s Sale all junior liens other than property taxes are wiped out. You will become responsible for paying the taxes to keep the property up to date.
If a home cannot be sold through the aforementioned sale type, the property then reverts back to the lender. Homes sold directly through lenders are typically sold with a clean title, meaning no additional taxes are due. Foreclosure listings will provide a tip for what properties may become bank owned properties.