To Renovate or Not To Renovate Your Lafayette Home Before You SellWhen thinking about selling your home in the Lafayette LA area, homeowners often feel they need to get their house ready with some
All About Foreclosures & "Zillow Pre-foreclosures" in Acadiana
Dated: July 6 2020
All About Foreclosures & Pre-Foreclosures In Acadiana
The term bank foreclosure is 1 which may seem strange to many individuals, especially if they have never undergone one and/or are unfamiliar with real estate lingo. Bank foreclosures occur when an existing homeowner can no longer pay their home loan, is deemed to be in default and the bank takes the home. The Ins & Outs of Bank Foreclosures that all homebuyers should know to make sure that they can be more familiar with the phrase and prevent this from happening to them or their families. All About Foreclosures & Zillow Pre-Foreclosures In Acadiana.
What the Lender Gains from a Foreclosure
The lender will profit in a few ways from foreclosing on a borrower’s house. The first profit is repossessing the house and putting a stop to any upcoming losses that may occur. As an effect of the homeowner’s nonpayment from that step forward. Another way the lender gains is that they will be in a position to sell the home. After they can try to recover what was lost such as loan amount, attorney’s fees, court costs, and some more.
Condition of Title in the Home
When an individual purchases a house in a foreclosure sale, the prospective buyer wants to make sure that the title in the home is without issues. A good tip to keep remember is, the lender will bid on a house at a foreclosure auction if the title is in good standings. May not bid if the title has issues. Lenders often bid on foreclosure homes properties at Sheriff’s sales to obtain the property and cash out for a greater amount at a later time. They will be less prone to do so if the title has issues.
How Lenders Dispose of Foreclosure Properties
There are many ways with regard to how banks dispose of foreclosed properties. Some banks advertise foreclosure sales on Zillow while others retain real estate agencies to advertise & market the properties for them. The bank wants to choose the most cost-effective yet least timely manner when it comes to getting rid of foreclosed properties. In regards to the larger banks, these firms have a department that specializes exclusively in handling these types of sales.
Investing in Foreclosed Properties
Some Acadiana property investors make their livelihood by investing in foreclosed properties and homes. These individuals scan the market for potential goldmines. Next, they try to find the property for the least amount of money they can. With that being said this will allow a more sizable profit when they later sell the property. A beneficial way for Acadiana property investors to find that perfect foreclosed home for sale is to do some private research at the local courthouse. Once the investor has found some potential properties, that investor should calculate the profit margin. If the property is a bargain the investor should go about buying the property.
There are a few tips and ideas for investors who are looking to buy foreclosed properties. The first is to always include associated costs and expenses in the calculations when identifying profit margin. Secondly, the investor should inspect and examine the property to be sure that they understand what they are paying for. Third, make realistic or practical offers as those which will not be quickly rejected or bid out by other investors. Lastly, once the offer has been accepted, try to sign the purchase and sales agreement as soon as possible. It will make sure that the property will indeed be your own.
Advantages and Disadvantages for Purchasing a Bank Foreclosure Properties
There could be specific advantages with purchasing a property that was foreclosed upon. The first advantage is that the price tag of the property may be much less than many other properties. It allows investors to make a really good profit when they resell the property. Another positive aspect is that many of the problems have been remedied by the lender and should not present an issue for the buyer. Lastly, a lower price obtained on the property will mean a lower monthly mortgage payment and accompanying costs.
As for the disadvantages, there is always a chance that an investor who purchases a property in this manner will have difficulty selling it at a later time. Another disadvantage of buying Lafayette foreclosure properties is that the property may be sold as-is and lead to the completion of multiple repairs by the new owner. May not qualify for special financing like FHA loans, VA loans, Rural Development loans 100% financing outside of the Lafayette city limits.
What is a Pre-foreclosure that is Listed in Zillow?
When a property is labeled as pre-foreclosure, it means that it is in the early stages of being repossessed, and will usually be sold at the Lafayette Parish Sheriffs Sale/Auction. All homes sold at the Lafayette Parish Sheriffs Sale are CASH ONLY and is a BLIND Auction, meaning buyers are not allowed to view the homes prior to the sale. Pre-foreclosure homes have a lot of uncertainty behind them, and that is not something the average home buyer is looking for.
Bank foreclosure properties are ones that the bank is anxious to sell and the investor is more than willing to buy. With this relationship in existence, it is easy to see how Lafayette foreclosure properties get sold as quickly as they do.
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Ted M. Daigle eXp Realty
1720 Kaliste Saloom Rd Suite B-2
Lafayette, Louisiana 70508
Ted M. Daigle | Realtor
About Ted Daigle – Realtor Growing up in Church Point, LA instilled values of hard work and dedication, which has carried over into every aspect of his life, including real estate. This Lafayette r....
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