Apex Foreclosures Investment Real Estate
If you are searching for a second home, or an investment property to begin earning rental income, then a good source of homes that will gain you equity quickly are foreclosures. While foreclosures in general are not good in the real estate market, when they are bought quickly, fixed up and then re-sold or rented, foreclosures can be a boost to the local market. The increase in home value after repairs, and the general care given to a home that is occupied are far more desirable than an empty foreclosure.
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To being your investment deal, you will want to learn a bit about the different types of foreclosures and the tips our Paramount Realty Solution REALTORS have to get the most bang for your buck as you invest in a foreclosure.
Two Types of Raleigh Foreclosure Action
There are two types of foreclosure action, the Judicial action is a proceeding where a mortgage, trustee or lien holder requests a court supervised property sale to cover the unpaid balance of the property debt.
The Non Judicial action is the process of selling real estate under a power of sale as a mortgage or deed of trust which is not in default. In a Non Judicial action the lender is unable to secure a deficiency judgement which can cause problems getting title insurance policies. You can find out quickly if you will have this issue by talking to your insurance company directly with the foreclosure details.
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Usually, a foreclosure notice has to be published in legal notices of local newspapers, as well as posted on the property itself, and banks also hold records of any area properties in default. sometimes the notices will be placed before the property pops up on the MLS. When a homeowner is late on three payments, the bank will record a notice of default against the real estate and if the owner is unable to pay the late monies, a trustee sale is held, where the property is sold to the highest bidder. The bank that has initiated foreclosure proceedings usually will set the bid price at the loan amount they are owed.
Although it seems rather straightforward, buying foreclosures is not as easy as it may sound, which is why you want to team with a Certified Distressed Property Specialist, such as one of our expert REALTORS at Paramount Realty Solutions. Whether you are a professional at flipping foreclosures or new to the investment real estate market, our expert foreclosure REALTORS have years of training, methods and procedures to ensure all your time, money and paperwork go through with smooth sailing. Our experts can also advise you on a true high bid amount to reflect the potential value of your flipped investment. You don’t want to go into a bid with high dreams, and then discover you are over your head once bidding takes off!
What Is A HUD Foreclosure
If you are strapped for cash and looking for a bargain, you may be able to buy a foreclosure property acquired by the U.S. Department of Housing and Urban Development for as little as $100 down.
HUD foreclosure down payments can vary depending on whether the property is able to have FHA insurance. If it can not have FHA, then payments can range from 5 to 20 percent. When the Raleigh area foreclosed properties are FHA-insured, the down payment can go much lower.
Each offer must be accompanied by an “earnest money” deposit equal to 5 percent of the bid price, not to exceed $2,000 but not less than $500.
You can only purchase HUD-owned properties through a licensed real estate broker. HUD will pay the broker’s commission up to 6 percent of the sales price.
Down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range from the conventional market’s 5 to 20 percent.
Raleigh Area Foreclosures
Buying a Raleigh area foreclosure property can be extremely risky, especially if this is your first time in the foreclosure bidding. Foreclosure properties are usually bought “as is,” which means there is no one to turn to if things break, are broken, or even missing. There is no “home warranty” to turn to for repairs. Foreclosed properties can sometimes be viewed and toured before bidding; however, it is not usual that the inside of a home can not be viewed before bidding opens.
In addition, there may be problems with the title, though that is something your expert Paramount Realty Solutions REALTOR can check out for you before bidding to ensure you are fully aware of the state of your investment.
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