This is my response to Elizabeth Rhodes article in the Sunday, March 4th, 2007 edition of the Seattle Times. Prior to becoming a licensed real estate agent I worked for Bellevue attorney who represented two large lenders processing all of their foreclosures. Something I learned from this experience was that there is a legal way to rob a bank. First, mortgage your home to 100% or more of its value, then don’t ever make a payment, and if you play your cards right you can live in that home up to a year or more before someone actually throws you out. Yes, it will ruin your credit, but desparate times call for desparate measures.
Consider this, if you were a homeowner who had equity in your property would you not try to sell it before you were foreclosed on? The main reason these homeowners don’t sell is because (1) they property is undesireable or in poor condition or (2) they owe too much. The properties that we foreclosed on had zero equity and were in deplorable condition by the time the foreclosure actually took place.
What are you buying? Foreclosed properties are purchased “sight unseen” and no inspection. You can drive by the property and see it from the curb. I would not recommend trying to peek in the windows or over the fence. These are distraught homeowners and are in no mood for visitors. Some homeowners even go through the process of destorying the property during the 90+ days they remain in the property during the foreclosure process.
What are you paying for at foreclosure? When purchasing a property at foreclosure you have what’s called the minimum bid. This is the minimum amount of money the mortgage holder will accept for the property. This amount not only includes the mortgage balance, but also all unpaid and accrued interest (figure 6 months interest) and all fees associated with the foreclosure process (a/k/a attorney’s fees).
What do you incur with the property? You must also know what “position” you are buying. Many foreclosed properties have a first and second mortgage, some even have a third. If you purchase the property from a lien holder who is in second position you become responsible for the first mortgage. If the first lien holder is foreclosing and there is a second lienholder – the second lienholder will be there bidding on the property in order to protect what they are owed.
In conclusion, my point is this . . . foreclosure is a complex legal process . . . it’s not eBay, and once you purchase the property there is no return policy. You are stuck with it and all of its problems. BE CAREFUL.
Share this Post
Comments 1
I completely agree with you. For any buyer or seller the legal intricacies are a bit too much to handle. Infact foreclosures are really tricky and even a slight mistake can land you in unending legal complicacies. Moreover, with advanced technologies and internet savvy generation holding the reigns of this modern world the process of marketing has undergone a sea change. Approaching people has now become much more easier but the authenticity is often doubtful, specially when it comes to selling or buying houses. Being a real estate agent myself, I understand the dilemma that a person goes through when he is planning to invest his fortune into his “Dream House”. Just pay a visit to my site – http://www.capitalcityre.com/ , and have a look at the real estate services and assistance with house selling process that we provide. We deal in Granite Bay real estate,Placer County homes, Roseville real estate and Sacramento commercial real estate.If you are searching for property in Sacramento, Granite Bay, Folsom, Rocklin, Roseville, Placer County, Sac & Carmichael, you will be able to find homes & real estate in the area of your interest more quickly with our assistance and excellent real estate property search service. Contact us today to sell or buy a real estate property in greater Sacramento area.