Other Buy Az Foreclosures Than EZ Homes
EZ Homes is not the only buy AZ foreclosures company in the industry. In fact, here at IPF Loans we offer comparable services and products. A foreclosure refers to the process by which lenders recover money owed to them (on defaulted loans) by selling or repossessing property used to secure loans. The process of foreclosure starts with a loan default after which a lender files/issues a public default note. The entire process can end in 4 main ways.
One, the borrower can decided to pay the default amount thereby reinstating the loan. This option is available during a grace period referred to as the pre-foreclosure period. The foreclosure process can also end by the borrower deciding to sell the property in question to a 3rd party during pre-foreclosure. This option allows the borrower to pay off his loan and avoid a foreclosure which has a negative effect on credit history.
A 3rd party can also buy the property in question at a public auction after the pre-foreclosure period is over. Lastly, the foreclosure process can end with the lender taking possession of the property with the intention of reselling. In case you are interested in buying foreclosures i.e. buying property available for sell via a foreclosure process, you have three main options.
One, you can buy property during pre-foreclosure. You can also buy the property at a public auction or buy the property from the bank i.e. buying bank-owned property. Below is a step-by-step hard money loans guide to help you understand the entire process of buying foreclosures.
Steps To Buying Foreclosures
1. Finding property
The first and the most obvious step towards buying foreclosures is to find property on foreclosure. This step is easy because there are very many sites online that have information on foreclosed property. All you need to do is carry out a simple online search to identify suitable property in your area/location of interest. You can also use real estate agents, banks among other lending institutions to find foreclosures.
Such institutions have information readily available to anyone who may be interested so it shouldn’t be a problem finding foreclosures. The problem is usually finding a foreclosure you are interested in i.e. property near you, property that matches your budget, tastes, preferences etc. This problem can be easily dealt with by using online search tools that narrow down to the exact kind of foreclosures you want.
2. Get finance
Once you find the kind of property you want, the next step to buying foreclosures is getting financing. If you already have money, this step shouldn’t be a problem otherwise, you will need to get your finances in order. You can start by preparing an affordable budget i.e. what you can afford to borrow and pay comfortably. You should get your finances at the earliest time possible to help you move faster once you locate suitable property.
Having finances ready also puts you in a better negotiating position since it displays seriousness to the seller. You stand a better chance of getting a good deal if you have finances ready before you approach the person or entity selling foreclosure property. Getting finances shouldn’t be a problem if you have a good credit history, a reference and/or an asset to place as collateral.
3. Contact a real estate agent
Once you have identified property and gotten finances ready, it’s time to contact your seller. If you found the property via a real estate agent, you shouldn’t have a problem reinitiating contact otherwise, you need a real estate agent if you found the property online. It is highly advisable to use a real estate agent when you are a first-time home/property buyer because property buying is characterised by numerous legal and technical procedures and requirements that a first-time buyer may not be aware of.
Real estate agents also offer many other important benefits i.e. price negotiations, due diligence, information on local property laws etc. which is crucial when you want to buy good property seamlessly. It’s important to ensure you use the best real estate agent you can get because such agents offer the best services i.e. fast services.
4. Contact the seller
Once you have a real estate agent, it’s time to contact the seller of the property you want. Depending on the status of the property, the seller can be the trustee, foreclosing lender or the owner in default. A good real estate agent can help you initiate contact fast and find out the property status. This step is important for finding out if the property has been reinstated or sold.
You should also use this step to evaluate the value of the property as well as check for any other additional loans/liens encumbering the property. A good real estate agent will help you do all this. The best real estate agents also known the foreclosure properties and their contacts i.e. trustees, banks, other real estate agents which makes it easier to initiate contact and get things done fast.
5. Make an offer
Once you have initiated contact with the right seller, assessed the status of the property and confirmed everything is perfect i.e. there are no other additional loans on the property, you can proceed and make an offer via your real estate agent. Real estate agents are better placed to make offers on foreclosures because of obvious reasons i.e. they are more experienced and knowledgeable in property valuation and negotiations.
A good real estate agent will be able to get you the best deal possible by making all considerations possible and using all the information they have to your advantage. The best offers factor in everything from the current fair market value of the property to the estimated cost of repairs and fair discounts. If you intend on buying foreclosures in auction, real estate agents are best placed to place bids.
One you make your offer, it is entirely up to the seller or the person/entity representing them to accept or reject. The process of buying foreclosures ends when the seller accepts or rejects your offer. When the seller accepts the offer, you can proceed and make payment as well as do everything else required when buying property. Your real estate agent should be able to guide you to the end.
The above information summarises the most important steps to consider when buying foreclosures. After going through the above information, you shouldn’t have a problem buying foreclosed property or property facing foreclosure. Although there might be more to buying foreclosures than what is discussed above, the above information is adequate enough to guide you on the right path.