Foreclosures Help Information

Tax Foreclosure Home Sales

Question: Can somebody explain to me about pre-foreclosure sales?

I'm looking into getting my own place. I'm single and on a slim budget, but tired of slogging a deadbeat roommate around.

I've seen a lot of "pre-foreclosure" 1-BR condos in the city for something like $395 a month. They say the owner is over 60 days behind on payments and want somebody to take over.

-Do you have to pay back payments for them, or just start with the current month?

-Does your monthly payment increase after a certain period of time?

-If you "rent to own," how much of your monthly payment goes toward the cost of the home, if you decide to buy?

-If/when you decide to buy the house, how does it all work out with mortgage, downpayments, etc.?

-Do you have to pay taxes, and if so how do you determine that cost?

I am pretty clueless about this stuff, so at this point any information would be very helpful! Thanks!

>

Answer: There are many pre-foreclosures that you might consider buying.

You would need to go to your local book store and find books to read on the subject as well as the state law of the state when purchasing a pre-foreclosed of foreclosures.

In the purchase of a pre-foreclosed or a house in foreclosure. A pre-foreclosure is a house that the current owner has not made his/her monthly mortgage payments for several months. The lender might have contacted this individual through the mail requesting payment or a reason why they have not received a payment from the owners.

These owners in some instances would like to sell their property even though they might be losing a little equity in the sale process.

You have to be careful of ads offering these pre-foreclosures because in most instances these properties have been purchased or under contract from the current owners by an investor. The investor is trying to sell the contract awhile making a little money themselves, and at times giving the current owners some money for their equity.

These investors are not all bad in themselves you have to be able to weed the snakes from the real McCoy.

If you are able to pull of buying a property from a owner that is currently in foreclosure then yes you must bring current any back payments as well as provide the current owners a little money to put in their pocket to assist them in moving.

When purchasing a foreclose from the current owner you would want to assume their current mortgage. You would want to tell you closing or escrow agent that you would want to take the property subject to the existing mortgage. These real estate professionals know and understand this term and will act accordingly.

When you rent to own the amount that goes toward the down payment is determined by you and the seller.

You always pay taxes and insurance prorated based on when you take position of the property.

The only way any monthly mortgage payment increase is if you have an adjustable rate mortgage or assume an adjustable rate mortgage. Even then the increase in the monthly payments would be spelled out in the loan docs you sign. Before assuming an adjustable rate mortgage you should get a copy the loan docs signed by the person you are assuming the mortgage from.

You have many questions that could be answered by the purchase of foreclosure books from your local book store that would explain and answer many of the questions you have.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

Florida State Tax Foreclosures: Buy a Foreclosed Home in FL

>

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Related posts

• How To Buy Tax Foreclosure Homes
• Tax Foreclosed Property
• Tax Foreclosed Homes
• Tax Foreclosed
• Property Tax Foreclosure Homes
• Property Tax Foreclosed Homes
• How To Buy Tax Foreclosed Homes