Dan Gil's Blog
What Is A Foreclosure?
A foreclosure is what happens when a property owner cannot make the required monthly mortgage payments for the property loan. This lapse in payment leads to the property being seized and then sold by the bank to make up for the loan deficit.
During the process of foreclosure, the homeowner does have the opportunity to make the loan current and avoid giving up their property.
When mortgage payments have been missed for 3-6 months, the lender will order what is called a Notice Of Default (NOD). This is the official notice that the homeowner is facing foreclosure. This notice begins the reinstatement period where the homeowner has the opportunity to make his account current. This period lasts up to about 5 days before the home is auctioned off.
If the defaulted loan is not corrected within 3 months, then a foreclosure state is established. At this point, a notice of sale will be given to the homeowner and it will also be posted on the property as an official document. The sale of the home is “advertised” in local news sources, typically over a three-week period.
Where The Sale Occurs
The sale of the foreclosed home usually occurs at the local county courthouse where the property is located. The details of the sale are located on the Notice Of Sale document. The sale is conducted as an auction in public, given to the highest bidder. A cash deposit must be made up front and the remainder of the price must typically be paid within 24 hours. The winner of the auction receives the deed to the property.
With a foreclosure auction, the opening bid is set by the lender. This starting number is usually equal to whatever the outstanding loan balance is including the interest and additional fees including attorney’s fees. If there are no bids higher than the opening bid, the property is purchased by the lender via the lender’s attorney. This makes the property known as “Real Estate Owned.”
Problems With Buying Foreclosures
One thing to be aware of when you’re considering buying a foreclosure is that the amount owed on the property can actually be more than the property itself is worth. Any liens excluding property taxes are typically voided at the time of purchase of a foreclosure, which is a slight bonus to a buyer.
The other issue with buying a foreclosed property is that you need quite a bit of cash up front in order to purchase the property. This is why buying a foreclosure may not be for everyone.
While no one wants to face losing their own property to foreclosure, getting a foreclosure notice isn’t the end of the road for homeowners. You’ll still have a few chances to make things right. If you’re looking to buy a foreclosed property, you really need to understand the ins and outs of what you’re getting yourself into before you make a bid.
Curb appeal is paramount for a home seller. Because if you allocate time and resources to enhance your house's curb appeal, you may be better equipped than ever before to enjoy a successful home selling experience.
There are many reasons for a home seller to improve his or her house's curb appeal, and these are:
1. You can differentiate your house from the competition.
The real estate market is fierce, and as a home seller, it is important to look for any competitive advantage. Fortunately, upgrading your house's curb appeal may help you differentiate your residence from the competition.
Remember, a home with a beautiful front lawn, flawless siding and other dazzling exterior features is more likely than other houses to make a positive first impression on buyers. If you improve your house's curb appeal, you can make your residence an attractive choice to homebuyers. And as a result, homebuyers may be drawn to your residence as soon as it becomes available.
2. You can boost the likelihood of maximizing your home sale earnings.
Optimizing the value of your home sometimes can be difficult, particularly for a seller who is unsure about how to list a residence and promote it to potential buyers. If you enhance your house's curb appeal, however, you may be able to maximize your home sale earnings.
A home with great curb appeal is likely to stand out to potential buyers, and as such, lead to many home showings. Meanwhile, if buyers like what they see, there could be lots of competition to acquire this residence. And if a seller receives multiple offers to purchase his or her home, this individual could reap the benefits of a profitable home selling experience.
3. You can speed up the house selling process.
The home selling process may be long and challenging, especially if a seller enters the real estate market without a strategy in place. Thankfully, a seller who improves his or her house's curb appeal can speed up the home selling cycle.
A house that makes a memorable first impression on buyers may prove to be a popular choice, regardless of the current real estate market's conditions. If a seller enhances a home's curb appeal, this individual can make it simple for buyers to fall in love with his or her house right away.
If you need assistance as you get ready to list your home, you may want to collaborate with a real estate agent as well. This housing market professional can offer tips to help you improve your residence's curb appeal. Plus, as you proceed along the home selling cycle, a real estate agent will help you determine the best course of action.
Prioritize your home's curb appeal – you'll be glad you did. If you dedicate time and resources to improve your house's curb appeal today, you could bolster your home's appearance and make your residence a top choice in a competitive real estate market.
If you discover a house that you want to buy, it generally is a good idea to submit a competitive offer. That way, you can move one step closer to acquiring your ideal residence.
However, the hours after you submit a home offer can be stressful, particularly for a buyer who fails to plan accordingly. Lucky for you, we're here to help you stay calm, cool and collected as you wait to receive a seller's response to your offer.
Let's take a look at three tips to help you get ready to handle a seller's response to your homebuying proposal.
1. Plan for the Worst-Case Scenario
Even the worst-case scenario is not the end of the world for a buyer who is awaiting a seller's response to a home offer. In fact, if a seller rejects your proposal, you can always reenter the housing market and continue your pursuit of your dream home.
As you await a seller's response to your home offer, you should not stop searching for available houses. Because if you continue your home search, you'll have no trouble moving forward in the homebuying journey if a seller rejects your home offer.
2. Consider All of Your Options
If you submit a home offer and a seller says "Yes," what should you do next? Consider how you'll proceed if a seller accepts your proposal, and you'll be better equipped than ever before to enjoy a seamless homebuying experience.
On the other hand, it helps to prepare for a potential counter-offer from a home seller as well. If you are open to negotiating with a seller, you may be able to find common ground with him or her and finalize a home purchase.
3. Consult with a Real Estate Agent
A real estate agent knows all about the stress that is commonly associated with submitting a homebuying proposal. He or she can help you minimize this stress and ensure you can achieve the best-possible results throughout the homebuying journey.
Typically, a real estate agent will work with you to submit a homebuying proposal. This housing market professional then will keep you up to date as you await a seller's response to your offer. And if you have any concerns or questions during this time, a real estate agent is happy to respond to them.
A real estate agent will make it simple to streamline the homebuying journey too. For instance, if a home seller accepts your offer, a real estate agent will be ready to help you move forward with a property inspection and appraisal. Conversely, if a home seller rejects your proposal, a real estate agent will be prepared to work with you to help you discover another house that matches or exceeds your expectations.
The waiting period after you submit an offer on a house may prove to be a challenging time. Fortunately, if you plan ahead for this period, you can maintain your confidence and continue to move forward in the homebuying journey.
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