There are many advantages and countless disadvantages about foreclosure. For people selling properties, there are always advantages, just as there are disadvantages for people buying foreclosed properties. But just anything about foreclosure, there may be mutual benefits for both sellers and buyers alike.
However, for people planning to buy a foreclosed property and for people intending to sell a foreclosed property, they are well advised to study and learn all about foreclosure. In this way, they will have a solid foundation of the ‘ins’ and ‘outs’ about foreclosure.
The very first thing they need to know is that there are three types of foreclosure: the pre-foreclosed, the foreclosure, and the post-foreclosure. The three types of foreclosure are actually the three ways of acquiring distressed properties about foreclosure.
The pre-foreclosed stage is a good venue for investors to do the most good for the distressed homeowner and for themselves. This stage occurs when credit rating of the homeowner can be forestalled. Therefore, the home or property to be foreclosed may now be transferred at a mutually-agreed-upon price before it is necessary to get the lender involved. Good thing in this stage of foreclosure is that the property may come from attorneys, accountants, real estate agents or business associates. As the name suggests, this stage about foreclosure comes prior to the actual foreclosure process.
The foreclosure stage occurs when a property is to be foreclosed for finally, as the name itself suggests. Since this is the phase when properties are identified for foreclosure, the best way to identify potential property is to visit the nearby county clerk’s office for foreclosed properties. All the prospective buyer needs to do is go visit the office and sort through the general index to discover the other pending foreclosure sales. It must be noted, however, that not all procedures are the same about foreclosure. The procedure may vary from one place to the next.
The final phase is the so-called post-foreclosure. At this stage, as the name implies, the lender has already taken control of the property. This phase occurs after the property is foreclosed. In this way, the property is now in the hands of a new owner or investor who purchased the property at auction.
Finally, it is always recommended to study about foreclosure’s three phases to see where to buy foreclosed property at its best. Becoming knowledgeable of the three stages will help buyers and sellers alike to have options about foreclosure.