The word ‘foreclosure’ may seem a nightmare, especially if one’s willing to buy a home in New York. However, there’s no need to fear a foreclosed property. Today’s scenario is completely different in comparison to the real estate market milieu that existed five years ago. At present, banks have started a renovation policy before shortlisting the home for property listings. At first, they inspect the home in foreclosure and do all the necessary repairs which is a huge advantage for buyers as they don’t need to spend money on repairs after buying the foreclosed property. That being said, some of you might still be in a dilemma of whether to buy a foreclosed home or not. So, we have rounded up top 5 advantages of buying a foreclosed home. They will help you make a sound investment decision.
Go through the following key advantages of buying foreclosed home and then make a decision by yourself…
1. Great Investment Opportunity
A foreclosed home is a great investment opportunity for buyers because it’s available at cheaper rates than the actual market value. How’s that possible? It’s quite natural to have this doubt. So, let us explain to you some details of the foreclosure process. Foreclosure occurs when a homeowner fails to indemnify the mortgage payments, and the bank/lender puts the property for sale for compensating the financial losses. This is why they sell the property at low rates just to get the remaining amount out of it. Further, your monthly mortgage payment would also be less.
2. Move-in Ready House
Getting a move-in ready house is a compelling reason to buy a foreclosed house. As discussed earlier, nowadays, the lenders/banks do all the necessary repairs in advance. Why? In today’s world, everybody seems to judge a book by its cover! One may not pay even the marginal rate if the home is in a distressed condition. Therefore, the lender makes all the required repairs beforehand. This clearly depicts that you don’t need to invest money as well as your precious time to get things done. You can shift to your home as soon as you complete the legalities.
3.Foreclosed House in New York
We have good news for foreclosed property buyers which could be a bad one for the foreclosed property sellers. According to a recent real estate survey, nearly 40% properties in New York City are in foreclosure. To be honest, this is quite a big figure. This interprets that foreclosed home buyers have a plethora of good properties to choose from. One can bargain and purchase a foreclosed house which suits their needs.
4. Better Neighborhoods
Foreclosed homes can be a boon if you have always dreamt of living in a posh site in NY. Let’s say there’s a home located in the central area of NY with a net worth of $500,000. If that home falls into foreclosure, its prices could lessen up to $250,000. You can encash such opportunities and be a proud homeowner in NY. In a nutshell, you can easily afford foreclosed properties in elite localities which otherwise could be costly and even beyond your budget.
5. A Step towards Bright Future
Even if you don’t want to shift your house, investing in a real estate property could be fruitful. You can buy a foreclosed home in a good locality and give it on rent. This way, you’ll be able to make a passive income and have a property of your own. This is perhaps the best way to gain financial security.
How to Proceed?
First and foremost, decide on the type of foreclosed property you want. After that, make a note of all the amenities and features you seek in a home. Once you are clear about your home goal, contact a reputed real estate agency in NY for exploring your foreclosed property buying options. They’ll not only help you throughout the foreclosed property buying transition but also, rationalize all the paperwork and legalities.
Do you seek a property in NY with a good neighborhood? At low prices? Keeping in mind all the above-mentioned benefits, a foreclosed home is the ultimate answer! Bear in mind that – Two heads are better than one. Therefore, contact a trustworthy real estate company in NY such as ‘Elite Properties’ to get the most out of the foreclosed home deal.
Have you recently received a foreclosure notice on your home? Well, panicking will never save your home from being in foreclosure. So, take a deep breath and cool off yourself, as many things have to be done before you quit yourself…
Owning and living in the same home is one among the American dreams. But, the recent studies have shown that it has created a sense of fear and frustration as they keep on trying to meet the ends and avoiding the foreclosure nightmare. If you think you are the only one who is in this situation, then you are wrong. People from all income levels are suffering from the clutches of homes in foreclosure even as we speak. And people feel more helpless when they try to get the help of internet to understand the foreclosure process. Since many real estate terms and jargons are involved, it is indeed difficult for an ordinary man to grasp and understand every crisp detail.
Well, numerous non-profit based firms provide foreclosure assistance for all. Through this article, we’ll try to lend you a few helpful tips to make you understand foreclosure isn’t the ‘end of times.’
Here’s what you need to follow when facing foreclosure…
1. Go Through the State Laws
You must know that every state has its own foreclosure laws. So, before jumping to conclusions, it would be wise to go through the State’s Laws on foreclosure. Depending upon the State, the home foreclosure can be either judicial or non-judicial.
As for a non-judicial foreclosure, there are no courts involved. The lender doesn’t have to go through the courts to file the foreclosure. He can send you a ‘notice of default’ (which is a notice mentioning the failure of payments) along with a ‘notice of sale.’
When it’s judicial foreclosure things get more complicated. You’ll be sent a complaint along with a summons to the court. It means that the lender has already filed a lawsuit against you. You shouldn’t miss the deadline for the response at any cost as the court will pass the law in favor of your lender and allow the foreclosure to proceed.
2. Foreclosure Doesn’t Happen Overnight
Foreclosure doesn’t happen overnight. And this is a fact. Foreclosure only begins when you miss a couple of months of payments. Usually, the lender will send you a notice of default when you miss four or five months of payment. They’ll also specify an amount that you need to pay for to cover up for the defaulted loan and a deadline along with it. Once you failed to meet the requirements, you can expect foreclosure process to begin any time.
So, you’ll have a minimum of four to five months (depends on the lender) after the last payment to cover up your default payments
3. Judicial Foreclosure a Boon?
Once you understand you are under either judicial or non-judicial foreclosure, the first thing to do is not to panic. Judicial foreclosure usually comes under foreclosure by bank. But, let us make one thing clear, the latter situation might be less advantageous as these happen way quicker. However, you’ll be the legal owner of the foreclosed property has been terminated by a new sale deal.
In judicial foreclosures, the court proceedings can take as much as a year. It will aid you in finding a new home. But, still, if you fail to find an alternative home within the deadline of foreclosure, you’d be welcomed with an eviction.
4. Call Your Lender
A lot can happen over a call. Don’t back yourself from calling your lender and asking for a relaxation. Explain your situation, try reasoning with him for an extended mortgage pay off time. Hopefully, he/she might agree. This might even help to delay foreclosure. Well, it’s worth a shot right!
5. Chapter 13’ Your Last Resort
Chapter 13 can be your last resort. A lawyer can help you file a Chapter 13 bankruptcy, which will in turn force the lender to negotiate a payment plan. But, use this as a last resort only. Being stated as bankrupt can hurt your credit score and filed suit against a lender can drag you into much more deeper troubles. You’ll also have an option to put your home on short sales.
With a little bit of preparation, you can survive the whole foreclosure process. You’ll have enough time to prepare for it, and you only need to vacate the property till there’s a new buyer. So, save up some money and look for a better and affordable rental. As for lenders, to find a buyer for a property under foreclosure is pretty tricky. There are many agencies and skilled real estate agents to ease up the pressure and help you get a new buyer. You can contact real estate professionals like ‘Elite Properties’ for more experienced advice and foreclosure help.