1. What is a foreclosure?
A foreclosure is a legal process in which a bank or other secured creditor sells or repossesses a piece of real property because the owner has failed to make payments on their mortgage. There are four ways the foreclosure process can end: A. The borrower makes an arrangement with the lender to pay off the default amount to reinstate the loan (otherwise known as forbearance). B. The borrower sells the property during the pre-foreclosure period. If the borrower sells the property during this stage, he will avoid having a defaulted loan on his credit history. C. Once the lender is awarded final judgment by the courts the lender will sell the property at public auction. D. If the property is not sold at auction or the bank purchases the property at auction, the lender gains possession of the property.

2. How do lenders foreclose on properties?
Every State has different laws regarding the foreclosure process. Although every State does have their own foreclosure procedures, there are two steps in the foreclosure process that lenders use to foreclose on properties that are consistent nationwide: A. The lender must record a NOD (Notice of Default) with the courts or file a lawsuit against the property owner. B. Once the notice of default (also known as Lis Pendens) is filed or is pending, the property owner is given an opportunity to make up the payments with penalty. It is during this period that the buyer has the opportunity to refinance their loan or sell their property.

3. What are the stages of foreclosure?

Pre-foreclosure - this is the period of time when the first legal proceedings takes place by the lending institution against the property owner. It is during this period of time that the property owner has a chance to settle their mortgage debt. The property owner can sell the property during this period. If the property is sold during this stage, the owner can avoid having a defaulted loan on their credit history.

Foreclosure Auction - If the debt is not settled and the lender is awarded final judgment by the courts, the lender will sell the property at public auction.

Real Estate Owned Property (REO) - If the property is not sold at auction, the lender regains possession of the property.

4. Who can buy a foreclosure?
Anyone! If you have the cash or can qualify for a mortgage, you can buy a Lender-owned property. Buying a foreclosure is just like buying any other property.

5. Can I buy a foreclosure as an Investment?
Yes. Any and all properties that I can sell are available to all buyers including investors.

6. How can I find out which foreclosure properties are for sale?
Right here!

7. How do I get more information about the foreclosure properties that are for sale?
Just call me or email me and I will be more than happy to send that over to you.

9. Do I need a real estate agent to buy a foreclosure property?
A real estate agent is needed to purchase government owned foreclosure property, but you don't need one to purchase REO properties or foreclosure auction properties.

10. What is a foreclosure auction?
Generally the foreclosure auction comes at the end of the foreclosure process when the homeowner can no longer repair their financial problems with the lender. As with any auction, the person with the highest bid gets the foreclosed property. Remember, if you are buying a home at a foreclosure property auction, you will be bidding against other investors and potential homebuyers. Do your homework in advance and know how much the property is worth, how much is still owed on the property and if there are any liens against the property.

11. What is an REO?
An REO (Real Estate Owned) is a property that reverts back to the lender after an unsuccessful foreclosure auction. The bank now owns the foreclosure and the mortgage no longer exists.

12. How do I find REO properties?
You can find REO properties right here.

13. Should I get pre-approved for a mortgage before buying an REO?
Yes!!! Pre-qualifying for a loan is important for a potential homebuyer because it helps ensure that the buyer is in a financial position to purchase a property, and it places the buyer in the strongest possible position to negotiate with the selling agent of the REO property. When a potential homebuyer already has pre-approved financing in-hand, negotiations with the REO selling agent and the lender go much smoother. Pre-approval gives you, the homebuyer, a concrete idea of what you can afford and shows the selling agent that you are serious about buying a home.