Everyone hears about "Buying a Foreclosure Home" but what actually is a foreclosure home. Charlotte Foreclosures and any foreclosure is technically part of the legal process that a lender, mortgage company or bank must do if the borrower fails to pay the mortgage as promised. If a home owner does not pay the mortgage on the home, the bank begins foreclosure proceedings. The bank/lender files paperwork at the County Courthouse to begin the foreclosure process. If the home owner still does not pay, after a certain period of time the bank/lender will eventually "foreclose". This means the bank basically will force a sale of your home in attempt to get the payment that was owed.
Most homes, in today's economy, have little to no equity (home owner owes more than the home is actually worth for resale). This being the case, the lender/bank "buys back" the home at auction. The bank is now the owner of the home.
Each state dictates the exact rules and time required from initial foreclosure notice all the way up to the foreclosure auction. The home owners situation can also extend the process (such as bankruptcy, inheritance, etc).
After the foreclosure process is over, the lender/bank technically owns the home. This is what is commonly is referred to as a Foreclosure home. It now is actually a Bank Owned Home. The bank must now decide what to do with the home. The bank must go through cleaning the home, maintaining the yard, evictions if necessary (rental homes and tenants add different rules), evaluate the value and then make a decision.
If the home is worth considerably less than what is owed, the bank then looks at the insurance policy (bank's insurance policy). This is often with HUD, Fannie Mae, Freddie Mac or the USDA. The bank may return the home to the Insurer or simply have the home listed by a Realtor and have it placed for sale.
This is often what is referred to a Foreclosure Home. The previous owner lost the home through foreclosure. Most homes that go through foreclosure were not well maintained by the previous seller and not in the best condition. The lender/bank adjusts the price accordingly. There are many great deals when buying foreclosures but the amount of the discount varies dramatically based on the overall real estate market that the home is located.
For example in the Charlotte Real Estate market, there are some neighborhoods were 30 to 40% is common and others where 10% is more typical. It is based on the demand. The general rule/reality is "the less demand for home owners to live in a given neighborhood, the deeper the discount".
Visit Charlotte Real Estate and learn what the greater Charlotte region has to offer and consider Charlotte Homes for Sale as you look to purchase Foreclosure homes for sale!
