Homes are not Alone in being Foreclosed on

You may or may not be familiar with home foreclosure, perhaps not firsthand, but familiar via knowledge of what it is. Foreclosure is a condition that occurs when an owner does not make payment on a loan that has been secured by property. In many cases that property is the home. In some cases though it could be a boat or other vehicle, and in yet other cases the security is land.

If you know the run-down for the process of liquidating homes that have been foreclosed on then you can probably imagine how it happens for land as well. Just as with homes you can find individuals that are facing foreclosure on land. They may be more than happy to provide you with a good deal on the property.

As long as the documents are in order you may be able to get more than you thought possible for less than you anticipated. In some cases there can be complications though depending on if the individual has the right to sell and other details.

In addition to owner sells there are also land foreclosure auctions. These are basically the same as you may the ones for foreclosed homes that you may know of. The lender places the land up for auction and individuals are allowed to bid. The land may sell for highly discounted prices, and in the case of open auctions you will have the opportunity to up your bid if you want the land.

Other auctions have different rules though and you may risk losing the bid or paying too much in some cases. It is a good idea to assess the land before bidding when that is possible.

Sometimes the lender may choose to sell the land in a direct transaction. These can result in good deals as well. You will have the certainty that is present in a negotiated deal as well. In these cases the paperwork is not in question either. At this point the lender has taken control of the property and they almost certainly have the right to sell the property. With these transactions there may be competition similar to an auction though.

It is important to know what you are getting and what the right price is for you. In some cases simply offering the most that you can pay in a direct sell or in an auction is not an idea. You have stated what you will give and the deciding factors remain with other parties. If you practice this technique in a direct transaction be certain to tell them before stating your price that you will not pay more or less for the item being sold.

Land can represent the possibility of future for many people. Others can turn land into a lucrative investment. The reasons that people purchase land are varied, as are the ways in which land is sold. Consider your options and shop for the best method for you as well as the best piece of land.

Original: Homes are not Alone in being Foreclosed on