REAL ESTATE

Foreclosure

Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property due to the owner's failure to comply with the monthly mortgage premium agreement - between 4 and 5% of housing property loans turn into Foreclosure Homes for sale.

The Mortgage Bankers Association of America reports every year the condition of housing loans. Out of 20 million loans, at least 1 million default on payments - these properties are turned into Foreclosure Home for sale, Bank foreclosure and HUD foreclosure – this presents a wonderful opportunity for the potential investors to buy properties below market value.

There are three major kinds of foreclosure purchases.

• Buying at foreclosure sale: A foreclosure sale is done through a court sale process in which the one who offers the maximum bid wins ownership of the property.
   
• Buying a pre foreclosure: A pre foreclosure occurs after a homeowner has failed to pay the debt on their property and before it has been sold at auction. One who has interest in that property make a discussion with the owner of the property before it is sold at the auction and he receives on the mortgage and any other debts on the property.
  
  
• Buying from a lender after a foreclosure sale - REO (Real Estate Owned) by the lender: This procedure is done by dealing with the lender that has taken back a foreclosed property. In most cases, lenders are banks are not in the real estate business. So they are trying to sell the property and get back their mortgage loan as early as possible.

Buying directly from the bank is the most accepted way to buy Foreclosures and such properties can frequently be purchased below market value - that means foreclosures sell for lower prices than comparable homes. Another reason for lower prices is to compensate buyers for some of the risks (such as maintenance) of buying a foreclosure.

A real estate agent can help you to purchase such a foreclosed property effectively. He/ she can help the buyer in inspecting the property and deducting the cost of maintenance from the total price of the property. Many real estate agents in partnership with lenders - can help you in preparing price, down payment, interest rate, and closing costs for the property.

Buy Property

Buying a home or property is one of the most important investments one makes and it needs cautious consideration. One needs to know the rules, regulations and legal implication before entering into real estate. The basic facts that affect the purchase of a home or property are -

• Price
• Location
• Old or New
• Flat or House
• Freehold or Leasehold

Following are some of the steps in buying a property.

• In depth Planning
• Find a reliable lender
• Survey or valuation of the property by the lender
• Pricing negotiations
• Finalization of mortgage offer.
• Exchange contracts
• Completion and payment

Real estate agents play a vital role in a property purchase - their job is to help buyers find a property that fits their requirements and budgets. Sometimes, they help their clients to get a home loan for the purchase. It is also their role to coordinate the closure between the client, the lender and the seller. It is best to make sure that any person in the business of buying, selling, leasing or dealing with real estate holds an estate agent's license, or be employed by a licensed estate agency as an agent's representative.

Sell Property

Selling a home or property needs careful consideration. A seller can sell the property himself or with the help of real estate agents taking into consideration; the rules, regulations and legal aspects in real estate deal.

Studies show that 82% of the sales are done through real estate agents - agents can prepare a market analysis for his clients and help the seal by providing investors various financing options and in recognizing capable lenders. Agents can direct customer through the closing process and ensure that everything runs efficiently.

All real estate licensees are not identical and services may change from one agent to another. While selling, an agent can give up-to-date information about the real estate market and assess market value of the property, set terms and condition, create a sale deed, and ensure closure.

Following are some simple steps to sell your home

• Prepare the home to sell - make it look nice and great
• Pricing the home – do not over price
• Find a real estate agent
• Marketing the home through ads
• Negotiating an offer on your home
• Home inspections
• Buyer appraisals and other details
• Closing

Here are some matters to consider in pricing the home.

• Location
• Financial conditions
• Supply and demand in the housing market
• Seasonal influences
• Local schools
• Average home prices in that locality
• Home's additional features like fireplace, swimming pool.