One of my specialties is foreclosures. I love this specialized market. It is my goal to become your full service Real Estate Foreclosure professional specializing in Chelan and Douglas Counties.
There are three phases to foreclosures:
- The default phase, also known as pre-foreclosure, is marked by a notice of default.
- The auction phase consists of public notice and a trustee sale.
- Post-foreclosure: the property has been foreclosed and taken back by the lender. These pieces of property are known as "real estate owned" or REO. The easiest way to buy foreclosed property is by buying REOs. These "real estate owned" homes always have a clear title, which saves time, expense and general worries about foreclosures. I list REO homes for several companies, from government owned to bank owned and also with servicing companies. These entities are professional sellers. Their goal is to get the property back into home ownership.
There are many misconceptions about the foreclosure process, and it can be complicated. Most misunderstandings have to do with deficiency amounts and what company is going to have authority to sell the property. Should you be in default on your property, it is possible to avoid foreclosure by selling the home.
Finding the value of your home is the first step. If the property can be sold and cover the deficiency and fees, then I recommend listing your home for sale and getting it sold.
Should the value of the home not cover the deficiency and fees, it is worth conversing with your mortgage company(s) about a Short Sale. A mortgage company may agree to approve a sale at less than they are owed; a short sale. Generally a bona fide offer is necessary for a mortgagee to consider a short sale, thus the property must be on the market. A Short Sale takes a lot of effort and time on the part of both yourself and your real estate agent. It is worth the effort because it can keep you from foreclosure. Some mortgage companies will consider a short pay off, and some will not. Give some time for the process, if the trustee sale date is too close, many lenders will not consent.
Beware of scams. Some seminars offer valuable information while others are sales pitches. Lists of properties that cost are generally from sources that are interested in signing up customers, not selling foreclosures. These lists often have REO homes that sold two years prior. In Washington State, Trustee sales must be publicized. REO homes are almost always marketed in the MLS where the property is located. Owners of properties in default often are scammed due to their vulnerability and lack of knowledge of the value of their homes. These owners should call real estate agents or appraisers to find the value of their home.
Contact me if you have interest in purchasing REO properties, selling your home, or learning more about the foreclosure process. I am here to help.