Pre-Foreclosures offer an Opportunity for Orlando Area Home Buyers
There is a lot of hype about buying homes that have been foreclosed. This is the situation where the lender/bank has taken possession of the home by judicial order for non-payment of the loan. Although there is an opportunity to get a good deal, I recommend looking at property that is in the pre-foreclosure stage for the following reasons:
· Sellers are much easier to deal with than lenders. Lenders typically have to get approval to accept offers which can greatly delay the process. It is in the seller’s best interest to try to sell the home instead of facing a foreclosure on their record, and they will normally be as flexible as possible.
· Homes are usually in better condition in this stage because the owners are still living there.
· Inspections are easier to make. After the bank takes over, the utilities are usually turned off making home inspections difficult. Utilities usually have a re-connect fee that the buyer is forced to pay in order to have the inspections completed.
I subscribe to Foreclosures.com’s (http://www.foreclosures.com/) database that includes a pre-foreclosure section. The first step in this process is Lis Pendens. Here’s Foreclosures.com’s description of the Lis Pendens process: Filed by a lender, a lis pendens is the formal notice that starts the foreclosure process. Even though this is considered a pending lawsuit, the homeowner still has possession and the right to sell or refinance the property. And, it represents a tremendous opportunity for homebuyers and investors to make money in the real estate market. In states that require judicial foreclosure actions, lenders traditionally file a lis pendens to foreclose on a mortgage or deed-of-trust loan that is in default. On the other hand, a notice of default is used in states that follow non-judicial foreclosure laws.
