Specific Questions Regarding Foreclosures:

What is a foreclosure home?

A foreclosure home is a property that has been foreclosed by a lender, in which the lender repossesses (takes over) a home and recovers the loan that a borrower was not able to pay. Reasons for a property to be foreclosed may be any of the following: death, divorce, unemployment, mental problems, drug/alcohol addictions, local economic conditions, and a serious illness in the family. In order for a lender to record a notice of default, the borrower must cease making mortgage payments. The lender then is able to file a judicial lawsuit.

Foreclosure homes are most beneficial to investors as well as new homebuyers when properties are below market value, usually 10% to 50% below market. Such prices are realized only when property owners are motivated to sell the properties. As a homebuyer, you can purchase foreclosure homes with instant equity. As an investor, you can purchase foreclosure homes as profitable properties that have built-in profit margins.

What profits are there from buying foreclosure homes?

Buying foreclosure homes are profitable because the properties have been purchased at discount prices. If you are a homeowner or an investor, make and even save money by purchasing foreclosure homes. Investors are able to purchase properties and later on re-sell them and obtain from the profits. Homeowners are able purchase the perfect home and still save money.

How can I begin investing in foreclosure homes?

We recommend you to become familiarized with the foreclosure process before investing in foreclosure homes. Keep the following questions in mind during this process:

Where can I find information on foreclosure homes? How do foreclosures come about? These are only some of the many questions to which the answers can be found on our Foreclosure1.com. Foreclosure1.com makes it easy to find foreclosure homes. Our database is nationwide, and includes a variety of homes below market value. On our Foreclosure1.com, you will find every kind of foreclosure home across the country.

What are the stages of foreclosure homes?

The three stages of foreclosures homes are the following: pre-foreclosure, auction property and real estate-owned [REO] property. The first stage of the foreclosure process is known as pre-foreclosure, which is the legal action taken by the lender. If the borrower is not able to pay their debt at the end of the first stage, the property then enters the second stage. This second stage is also known as an auction, which opens opportunities for buyers. This process is also known as the actual foreclosure sale auction. If the property is not sold at an auction, the property is returned to the lender. The property is then known as a REO property.

Properties insured by a federal agency, such as HUD or Fannie Mae, or assured through the Department of Veterans Affairs [VA]. Such properties can be found in the fourth stage. When these properties are returned to the lenders, the agencies take complete rights of the properties once reimbursing the lenders. Preparations in order to sell the properties to the public are made through the agency.

How do lenders foreclose on property owners?

Procedures for lends to foreclose properties usually vary in every state. The first necessary step is filing a judicial lawsuit, or recording a notice of default completed through by the lender. The homeowner can resolve such problem by either selling or refinancing the property during the reinstatement period which can last as much as 21 days, in a state as large as Texas or as long as 6 to 12 months in some other states.

Are real estate brokers necessary when purchasing foreclosure homes?

Having a real estate brokers present is not necessary when purchasing a foreclosure property. Before the property is able to enter into an auction, the foreclosure home can be purchased directly from the homeowner, through auctioneers or foreclosure attorneys at the public auction. They can also be purchased through lenders after they have repossessed the property from auctions. You can purchase foreclosure homes with or without a real estate broker, not mattering the condition of the property.