Forecloses

Foreclosures have high returns because you can purchase properties for literal pennies on the dollar. But as most high value things are, this generally means they are more difficult to get your hands on and keep them. A foreclosure occurs when you fail to make a specific amount of payments on your mortgage loan. After your notice of default and once you exceed your grace period the property goes to auction. You can acquire these properties pre-foreclosure, at auction, or even after auction. Purchasing a pre-foreclosure is a great time to purchase because you can skip the entire auction and thus most competition and negotiate directly with the owner rather than the bank. You can find preforcloures in the newspapers, at the sheriffs office, online, or by sourcing lists of various code violations or unpaid taxes. You can also purchase foreclosures at auction at the county courthouse on specific days or online at auction websites once they pass in person auction. Lastly you can purchase properties after auction by contacting an owner and having redemption rights signed over to you or REO (bank owned) on the MLS. Typically the further down the foreclosure process the more competition and higher prices. Foreclosures vary highly depending on state laws and different counties. A foreclosure auction in Georgia is not the same process as it is in Minnesota. In each state homeowners have different laws and different timelines. In Minnesota we have a standard 6 month redemption period. This means even after the sale the originial owner has 6 months to puchase back the property. Visit your counties website or contact us for more information.