Foreclosures Help Information

Posts Tagged ‘Foreclosure Sales’

Hud Foreclosure Sales

Question: What's a HUD case mean for a house listing?

I found a house listed for sale online and it says it's a HUD case, does that mean it's really crappy inside? Or does that mean it's owned by HUD as opposed to a bank like a foreclosure? How does a house become a HUD house?

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Answer: HUD offers an insurance program which covers any losses by a bank when that bank issues a HUD loan. HUD does not loan anyone any money. They are an "insurance" policy. The buyer of the home paid the fee for that policy when she bought the house.
Your house is owned by HUD. HUD paid off the bank and took title. Now they are selling it. It will be sold "as-is". You can look inside the house since it is up for sale. You make your offer assuming that everything does not work. Most of their houses have a minimum bid .... often in the listing.

Colorado Springs Real Estate HUD Foreclosure 759 Memory Ln 80817

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Mortgage Foreclosure Sales

Question: Do "Short sales" with 2 mortgages really usually just go to foreclosure?

instead of the house actually selling as a short sale? i put an off in on a short sale on May 5th and the seller approved it almost immediately. i just found out today though that the house has 2 mortgages and the 2nd mortgage has accepted our offer and now were just waiting on the 1st mortgage to respond.

Is it likely that we will actually close on this house? or is it more likely for the house to go to foreclosure?

any input will be valued. thanks

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Answer: You want to know what's crazy about short sales? There is no way to tell which ones will go through and which ones won't. Sometimes ones with multiple mortgages will work out and the ones with only one won't, or vice versa. It's so hard to gauge since your putting everything in the hands of bank employees who have no real experience in the real estate market. This is just dumped in their lap and they have to make a decision for people they don't know and don't care about. Plus, they also have the fun job of recommending to their company that they should lose this amount of money. The whole thing is such a mess.

I know how you feel though. It will be 4 weeks tomorrow since our offer was sent to the bank on a short sale. The owner on ours accepted the offer two days after we submitted it, but we all know that doesn't mean anything. It doesn't even make sense why the offers are presented to the owner since they really have no say, only the bank does. The house we're trying to buy has one mortgage so we only have to wait on one bank.

When we were considering putting an offer in, we had our Realtor contact the listing agent to find out how many lenders were involved. We were advised by our agent that even though it's all just guessing, short sales with multiple mortgages are less likely to close. It's hard to get one bank to agree to the price never mind two that don't care about each other. Often times it's the 2nd mortgage that holds things back though, so hopefully since the second one in your case accepted it will work out in your favor. You never know though. Be prepared to lose the house due to the banks not agreeing just in case. If you get it that's fantastic but you have to be prepared to lose the house you love, it helps it sting a little less.

I wish you lots of luck! This is our second offer on a short sale since we started looking in February. The first one was rejected after 3 weeks so we're hoping we're close to an answer. I hope you are too!

Maybe we'll both have our houses very soon! =D
Brit

Taxes on Short Sale, Loan Modification & Mortgage Foreclosure 7 Nov08 Bankruptcy & Insolvency

Bank Foreclosure Sales

The bank foreclosure process is a several step process which is activated by a bank which owns a mortgage that is not being paid on. Typically a bank will take steps to correct the situation prior to beginning the bank foreclosure process. This is due to the fact that this foreclosure process is quite costly to the bank and under most circumstances the bank will end up losing money on the resale of the home as well making it a huge overall loss to the bank.

There are actually three common steps associated with a bank foreclosure. The first step is when the bank files for lis pendens or suit pending. Essentially this stage is when the bank files a formal document with the court system indicating that they have no received a mortgage payment for a period of time. Most banks will allow around six months of no payment before proceeding with this step.

The second step of the bank foreclosure process is when an attorney representing the bank formally requests an auction to be held on the house. The goal of this form of auction from the banks perspective is to hopefully sell the property off for more than what the mortgage is for. The opening bid always belongs to the bank and it is for the current mortgage amount. Under most circumstances no bids will be made on the property since in most cases the properties are worth less than what is owed on them.

The final stage of the bank foreclosure process is when the property transfers back to the bank. At this point the property is known as a bank owned property or real estate owned property. At this point most banks will attempt to sell the property at anywhere between ten and fifteen percent below market value since the property is considered to be a liability by the bank.

Can Buying Bank Foreclosure Properties be Profitable

The profit making potential of a bank foreclosure property varies widely based on the situation. Typically a bank foreclosure process can be bought in any of the three major stages of the entire foreclosure process. In the lis pendens stage the property owners may be allowed by the bank to perform a short sale. In some rare circumstances properties can be picked up at or below the market value. It is fairly rare to get a great deal in this stage since even if the owners try to sell at a great price the bank will usually decline the deal. Auctions on an extremely rare occasion can yield great deals. Unfortunately since most people who end up going into foreclosure fail to make any payments at all or only make one or two from the time they bought the property the mortgage value is usually equal to or greater than the actual property value. Buying bank owned properties in the right market can be extremely profitable but even these can carry potential pitfalls.

Under normal circumstances banks will list these properties at 10% to 15% below market value but they often require extensive rehab work. In some extremely weak markets bank owned properties can be found which are selling at 30% to 50% below market value. At this point these properties can become great investments.

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Article Source: ArticlesBase.com - Understanding the Steps of a Bank Foreclosure

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