Buying a house in foreclosure listings: a gift or a trouble

Buying a house in foreclosure listings: a gift or a trouble Apartments marked \"foreclosure\" are often found in ads for the sale of real estate. Some buyers immediately ignore such offers, fearing scammers; others consciously look for them, because, as a rule, such options are cheaper. You are here means; you have an interest in such properties. Here we describe you all the details about these things. What are the benefits of buying a house in foreclosure listings? The price of mortgaged real estate is usually below the market price. The fact is that such apartments cannot be taken into a mortgage, because they already serve as a guarantee of repayment of some loan. This circumstance reduces the number of potential buyers and forces owners to significantly yield in price. In addition, the fact that a house in foreclosure listings comes in to a bank with a good reputation can be considered as a guarantee of the \"purity\" of documents. Before issuing a loan, the bank must check whether the title documents are in order, weigh the current risks, assess the value of the property and only then issue a loan. What challenges might you face? Having foreclosure real estate, the owner can dispose of his property: rent, sell, donate, make redevelopment only with the consent of the bank. In this regard, the buyer of foreclosure real estate may have problems with the paperwork. And in a transaction with the preliminary release of real estate from collateral, and when replacing the owner of the pledged property, you will have to wait for the decision of the bank. Problems may arise with former tenants if you purchased the apartment at the auction of the mortgagee bank. The eviction of the previous owners is handled by the new owner of the apartment. You can get a criminal case for arbitrariness. So you have to go to court with a lawsuit for eviction. Then the bailiff has the right to evict the debtors within the framework of enforcement proceedings.

How to avoid the risks to buy house in foreclosure listings? Usually, to make a transaction with mortgaged property, the owner must fully repay his loan. Most often, the buyer's money is used for this. The main risk is that the seller, having received part of the payment to repay the loan, can spend the money on something else or hide with them. It will be impossible to complete the transaction in this case, since the loan in the bank will remain outstanding, and the collateral will not be withdrawn. To avoid this, experts advise to give part of the money required to repay the loan only as a deposit and be sure to document their transfer. Next, you need to go to the bank with the seller to make sure that the loan is repaid. In addition, the risk of losing funds may arise due to the buyer's incomplete knowledge of the seller's obligations. For example, the amount that the buyer provided in the form of a deposit may not be enough to release the apartment from the deposit - because of the accumulated penalties. If this becomes clear after making a payment to the bank, it will not be possible to withdraw money from the lender. Those who want to buy an apartment or house under foreclosure listings often pay more attention to the collateral property of banks. The purchase of such housing is a complex procedure that requires special attention and participation of the buyer, debtor and creditor. Let's try to figure out whether the efforts spent are worth the possible benefits. ***End***