Foreclosures, repossessions, bankruptcy?
What is the difference between all of them when you want to buy a house. Which one is most likely to be the most advantageous?
When you go on a website for foreclosures, it gives a property price is this how much it is worth or how much you need to pay on it?
Posted: December 25th, 2009 under Renting & Real Estate.
Tags: Bankruptcy, Foreclosures, Property Price
Comments
Comment from chatsplas@sbcglobal.net
Time December 29, 2009 at 8:59 am
Generally when some one files bankruptcy, they are able to keep their home. They may sell their home prior to bankruptcy if they’re trying to pay off debts. If you’ve filed bankruptcy, you’ll find it difficult to get a loan.
Repossessions apply to cars, trailers, mobile homes, not traditional homes. It means some one signed up, paid, then stopped paying as agreed, and the bank is taking back the property because they own a larger interest than the so-called owner.
Foreclosures mean some one is losing their home. A new buyer of that home is hoping to get a bargain off the first one’s misery. The first buyer was not a good money manager, had large medical bills, lost their job, or bought more home than they could afford and are losing it. With foreclosures, when the owner is still in residence, it can be a problem getting them out, and if they’re bitter, they may damage the property, (although they could face criminal charges for so doing).
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Time December 31, 2009 at 4:22 am
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Comment from LivingDebtFree
Time December 26, 2009 at 6:11 am
Caffeinated Content
First of all, bankruptcy has nothing to do with purchasing a home. Unless of course, you’ve had a bankruptcy yourself, which will make purchasing a home much more difficult and much more expensive than other buyers will experience. Bankruptcy is a legal process to restructure or get release from overwhelming debt when you do not have the ability to re-pay it. It is a separate legal process from foreclosure.
A foreclosure property is one where the bank or lender has repossessed the house through a pro-active legal process. The bank or lender may also repossess a house through other means, like accepting a deed in lieu of foreclosure.
If you want to buy a house, there are many considerations in purchasing a foreclosed/repossessed house. Often people in financial distress do not maintain their homes to the highest standards due to lack of the financial ability to do so. These houses MAY have a much greater need to be repaired or have hidden problems.
Foreclosure websites usually give the ASKING price for the property. Depending on the bank, this may be negotiable.
The wisest thing to do would be to contact a knowledgeable REALTOR experienced in these kind of transactions. If you are a first time buyer, this may not be the best way to buy your first home–any many foreclosure property’s condition may preclude them from qualifying for and special “first-time buyer” program.