The first thing to understand about purchasing Charlotte Foreclosures are the various types of foreclosures. Before the actual home is foreclosed upon is called a pre-foreclosure. This means the owner is behind on his payments and the lender has begun the required legal process to begin the foreclosure. This is the beginning as the lender files paperwork at the court house requesting a hearing.
A pre-foreclosure has several forms and several possible end results. The first scenario is when the seller has equity in the home. The higher the equity in the home is less likely for the home to go through foreclosure. The current owner will either catch up on the mortgage or sell the home. If he sells the home, then you can likely get a good deal because the seller knows it must be sold quickly (before the foreclosure proceedings). The caution with this type of purchase is that the seller, since he is having financial difficulties, is likely not maintaining the home.
The next scenario is if the seller has no equity and has no money. This home has not been maintained and now the foreclosure seems inevitable. At this point and time the seller can contact the lender and work out a possible "Short Sale". A short sale is when the bank accepts less than what is actually owed from the current owner. The bank decides if the offer amount is adequate based on their cost savings of the foreclosure, the higher risk of damage and the current market value. There can be great opportunities for deals in this type of purchase.
If the seller still can not sell the home, then the home goes into foreclosure via an auction. The beginning bid is placed by the lender for the amount owed on the home. The bank assumes the vast majority of these homes because in today's world, most foreclosures have no equity.
When a home is purchased via foreclosure, the lender now has an appraisal completed and the home is marketed. These homes are listed by Realtors to effectively market the home.
I hope this information is helpful. For additional information visit Charlotte NC Foreclosures or Charlotte Real Estate and begin your search.
