what does it mean by the term " Foreclosures homes"
2007-02-25 05:38:22 · 5 answers · asked by outrider 2 in Business & Finance ➔ Renting & Real Estate
why is it very cheap?
that is cheaper than regular homes for sale
2007-02-25 05:48:10 · update #1
Foreclosure is a process in which the banks take back the home because the owners are not paying /have not paid their loans.
If the property is still owned by the owners, the theory is that they are willing to sell their home cheaper than what's available in order to sell before the bank owns it.
If the property is owned by the bank, the theory is that the bank will sell it cheaply to get rid of it or because there is damage from the owners or both.
The reality is that just because the home is in/or has been foreclosed on doesn't mean it's a great deal. Just talk to a real estate agent and state that you're looking for an undervalued home.
Regards
2007-02-25 08:26:56 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The reason foreclosed properties are considered "Cheap" is because often, the owner (often the lender) wants to unload the property from inventory. Sometimes you can get a home for the remaining amount left on a mortgage, (say they paid 15 years on a 30 year mortgage - you only pay 50%) and sometimes they will sell it for the taxes due on the property. The key thing here is to be careful. Often when a home is foreclosed on, the arrers, taxes, penalties or condition can impact the value of a property. If you're thinking about investing in foreclosures, I'd advise you to acquire a buyers' agent. They can "Bird Dog" these deals for you and they charge little or nothing compared to the profit potential.
2007-02-28 16:56:56 · answer #2 · answered by Jay S 3 · 0⤊ 0⤋
The term "Foreclosure Homes" means that the borrower is in default because they can't pay per the terms of the Note and there are some legal proceedings in the process regarding the property for the lender to recoop their funds.
After a foreclosure is complete, the property is considered "Real Estate Owned" or REO.
2007-02-25 13:51:47 · answer #3 · answered by annazzz1966 6 · 0⤊ 0⤋
It means you are a bum! You're a deadbeat. Get out of the house 'cause they're taking it back. It means that you'd better get packing and fast! It means that if you go back in that house the sheriff will put your butt in jail. It means you'd better come up with the money or your new neighbors will be the rats in the gutter. It means you'd better get your act together. Now!
2007-02-25 14:54:46 · answer #4 · answered by DARMADAKO 4 · 0⤊ 0⤋
the bank takes over the loan and forecloses the home. the person who owned the home now must vacate the home.
2007-02-25 13:46:10 · answer #5 · answered by katie d 6 · 0⤊ 1⤋