The foreclosure process can be a complicated and scary one for those going through it. Conversely, the foreclosure process is also an opportunity for buyers to purchase a home at a much lower price. The foreclosure process is a lengthy one. There are several phases in the foreclosure process and include: Payment default, a notice of default, trustee’s sale or auction-Washington state allows for this to occur without a Court order-this is also referred to as judicial foreclosure, real estate owned or new buyer at auction, and eviction.
In most cases, federal law prohibits a lender from starting the foreclosure process until the borrower is more than 120 days past due. A home is not considered foreclosed until it has been sold at auction. A homeowner may take steps to stop the foreclosure process up until it is sold.
Foreclosed Homes Kirkland
When looking to purchase a foreclosed home, there are several factors to consider
- The house may be in poor condition
- Foreclosed homes are easily found via websites
- Competition with house flippers
- The length of the foreclosure/buying process
- There are different types of foreclosures, such as short sale and real estate owned
- There are programs to assist with purchasing a foreclosed home
Contact us today for more information on purchasing foreclosed homes.
Foreclosed Properties Kirkland
A foreclosure will require you to wait anywhere from three to seven years before buying another house. However, a foreclosure on your record doesn’t necessarily mean you’ll never be given another chance. Whether your foreclosure was a result of an economic downturn or irresponsible spending will be a factor in determining your financial readiness to become a homeowner again. Your debt-to-income ratio will be a factor in modifying an existing loan or a possible future mortgage. While it’s important to acknowledge the seriousness of foreclosure and your ability to obtain another mortgage in the future, it’s also important to acknowledge what this process does for new buyers. A house previously out of budget for first-time homebuyers now have the opportunity to throw their hat in the ring.
The best way to deal with foreclosures is to avoid them completely. Even the most responsible of borrowers can fall on hard times. Creating an emergency fund can help when times get hard. Even the smallest amounts build up over time and can help keep your home. This fund can also assist you with buying a new home, as well. Contact us if you are in the market for a foreclosed home and let us help you find the perfect house at a more affordable price.