How Does a Dallas Foreclosure Work?
When home buyers want a great deal in Dallas real estate they invariably think about buying a foreclosure first. Buyers usually have a picture in their mind of that perfect little house that was lived in by a little old lady who fell on hard times and, by the way, kept the home in tip top condition, but this scenario is generally far from reality of a foreclosed home. Why Do Homes Go Into Foreclosure? Sellers stop making payments on their homes for a many different reasons. It is rare that a homeowner chooses to go into foreclosure voluntarily. Foreclosure is often a result from one of the following reasons: · Out of work · Medical conditions · Excessive debt · Divorce · Job transfer to another state · The death of one of the ownersBuying a Home Directly from Sellers in Foreclosure Investors specialize in buying foreclosed properties prefer to buy these homes before the foreclosure process is finalized. Before approaching a seller in distress, consider the following: 1. Foreclosures vary from state to state. In some states, homeowners can end up staying in the property for almost a year. In other states, a seller has less than four months before the foreclosure sale occurs. 2. Almost every state provides for a redemption period. This means the seller has an the right during a certain length of time to cure the default, including paying all foreclosure costs, legal fees, back interest and missed principal payments, to regain control of the property. 3. Many states also require that buyers give to sellers certain disclosures regarding equity purchases. Not doing so may result in fines, lawsuits or even revocation of sale. Buying a Home at the Trustee's Sale Check with your local county office to find out how foreclosure sales are handled in your area, but common procedures are: · No financing contingency · Sealed bids · Proof of financial qualifications · Sizeable earnest money deposits · Purchase property "as is"Sometimes buyers are not allowed to view a before making an offer. The problem with buying a house sight unseen is that you can’t determine how much it will cost to repair the home or bring it up to code. You also don’t know if the occupant will retaliate and destroy and steal fixtures from the home. Furthermore, you may need to evict the owner from the property after you receive title, and eviction processes can be time consuming and costly. Foreclosures are a great way to but make sure you do your due diligence and retain the services of a .
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