A seizure property is a house that belongs to a bank. A foreclosure occurs when the default owner on their mortgage. There are three stages of a foreclosure. The first is the pre-foreclosure phase. This is where the owner is on their mortgage payments and have published an official notice that they serve as a mortgage started the foreclosure process. Before a completed foreclosure, the owner can sell the property. If there is no equity in the property, the house could be sold as a short sale. The second stage of a foreclosure is that the house is sent to the auction. On a bidding, the most offering can buy the house. The bank that holds the mortgage can also bid on the property. If the house is not auctioned, the default bank takes ownership of the house. The final stage of a foreclosure is when the bank owns the property puts the house for sale through a real estate agent, or the bank can try to sell the property directly to the public.
There are many advantages to buy a property belonging to the bank. The most obvious of these is the property can be offered at a price lower than other similar properties. The longer a bank that holds a reversal property, the more money they will lose. Because of this, a bank will want to try to sell properties listed as quickly as possible. The Bank’s goal is to sell their properties as soon as possible to minimize their loss. Although the auction on a property belonging to a bank will require patience, it is often easier to negotiate with the bank than an individual owner. Indeed, a bank has no emotional attachment to a property, as an owner can have a sentimental value attached to the house. For this reason, the bank generally takes decisions resting strictly from the value of the house. Another advantage of buying a property of the bank is that they are vacant. When you buy a home from a person, there is usually a waiting period after the closing date of taking possession of the house. When buying a property of the bank, a buyer will probably get the keys to the property, the same day, the house transfers its name.
There are disadvantages for the purchase of a property belonging to a bank. These include the time that can be required to close on the property and the fact that the properties belonging to the bank are usually sold “as such”. Patience is necessary if you are going to buy a property belonging to a bank because the bank will not allow the property to transfer until the title is erased from all privileges. Most real estate agents will tell prospect buyers from the banking properties, “Buyer beware”. This means that some properties of the bank have been vacant for months or even years. Because of their vacant position, they may have invisible damage. Damage may include all the functions of the house (plumbing, heating, electrical, gas) or possibly serious (structural). It is in your interest to hire a general contractor or a professional inspector of the house to inspect the property thoroughly, before entering a purchase contract.