Lafayette Indiana Real Estate - West Lafayette Homes For Sale

Buying Real Estate Foreclosures


Bank owned foreclosed properties have already gone through the foreclosure process and are owned by a bank or lender. It is much easier to purchase a foreclosure than a short sale. Typically, you can get a response back from the bank rather quickly sometimes as early as 24-48 hours as compared to a short sale which can take months.

A short sale (pre-foreclosure)occurs when the proceeds of a real estate sale are insufficient to cover the mortgage or balance owned on the property. In a short sale, the bank agrees to take less than what is owed to them to an economic or financial hardship on the part of the borrower. A (pre-foreclosure) short sale negotiation can take a long time to accomplish. In many cases it takes months to negotiate a short sale. Be prepared to spend a lot of time and energy in a short sale negotiation. If you need to move a home quickly it might be best to exclude short sales from your list.

The foreclosure processis typically a bank or other secured creditor selling or repossessing a property after the owner has failed to comply with an agreement between the lender and the borrower called a mortgage. In other-words, the homeowner stopped paying on the promissory note and the bank takes back the property. When the foreclosure proceeding is complete, the lender can dispose of the property and keep the proceeds to pay off the mortgage and any legal costs.

 

Len Wilson Real Estate LLC