how buying a foreclosed home works

Buying a foreclosure can save you a lot of money, but the journey is fraught with peril. Buying a foreclosure can save you a lot of money, but the journey is fraught with peril..

If you buy a foreclosed house in Alabama, the former owners get a redemption period during which they can pay you the purchase price and get the home back. Buying at Auction. When the foreclosure proceeding is complete, the home is put up for auction, usually by a local official such as a county sheriff.

Buying a foreclosure (FCL) house is often touted as a way for both owner-occupants and investors to obtain a great deal on a property. However, the potential financial rewards don’t come without.

 · A safer choice is to buy homes that are owned by a bank. These properties, often referred to as REO or real-estate owned homes, have already been through the foreclosure.

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It depends on where the home is in the foreclosure process. This is another reason why a knowledgeable real estate agent or attorney can provide a valuable service to you. Buying real estate at auction can be a lucrative-and fun-way to start or enhance your investing career.

Remember the sale is for the home as is. The first two steps in buying a foreclosure should happen almost simultaneously: Find a real estate broker who works directly with banks that own foreclosed.

The following is a generalized breakdown of the foreclosure process, a look at the stages of foreclosure, auctions, and tips for bidding on them. You are at: Home The Foreclosure Process: Understanding How Foreclosures Work

These details, and others, will determine the steps you’ll need to take to buy a foreclosed home. If you’re considering a foreclosure as a first home, a second home or an investment property, it’s crucial to know how these sales work and which pitfalls to avoid. part ii: Should you buy a foreclosed home?

Government organizations like hopenow.com offers free foreclosure prevention advice and assistance which may work for you. Another way to avoid foreclosure is to sell your home during the pre-foreclosure period. A third party buys your home allowing you to pay off your loan and avoid having a foreclosure listed on your credit.