What is the difference between a foreclosure auction and a foreclosed property?
ARE YOU THINKING ABOUT BUYING A HOUSE OR A DEPARTMENT AT A PRICE BELOW THE MARKET? BEFORE YOU MAKE A DECISION, IT IS IMPORTANT THAT YOU IDENTIFY THE DIFFERENCE BETWEEN A MORTGAGE AND AN AWARDED PROPERTY.
Mortgage auctions are one of the most economical options for building a wealth. Through them you can access highly attractive offers, paying a lower percentage than their market value.
However, not all mortgage auctions are easy processes to get a property. So, if you are interested in investing in a property in this condition, these are some of the things you should know.
What is a mortgage auction?
When a person fails to pay a mortgage loan on time, the mortgage institution by law can claim the property and put it under a process of auction, with which to recover the remaining credit granted.
In this auction, the rights of the mortgage are granted to a third party, who must follow a legal procedure to become the new owner.
Foreclosed homes can lower their price up to 60% of their real value and preserve and even increase their surplus value once the debt has been released. However, in order to achieve this, an average of one year must be expected before the legal situation of the property is resolved.
How to get a property in foreclosure
All the properties that come into legal conflict are put to dissipation by a court that will proceed to sell them through a public auction. To participate, interested parties must make a deposit in Bansefi of 10% of the published value and make an offer privately. The new owner will be the one who offers the largest amount and must pay the full amount in the next 5 business days at the close of the auction.
It is important to keep in mind that in this process the expenses of the litigation must also be covered, as well as the lawyers and notaries that participate, without forgetting the outstanding debts of services. In addition, it will be impossible to visit the property and know its conditions, since, as a rule, these are still occupied by the debtor.
A trial usually lasts from 8 months to more than 2 years but, at the end, the home is delivered to the new owner free of all legal problems, including seizure, liens, encumbrances and damages caused.
To know the offer of mortgage auctions, check the judicial edicts of your town.
What is a foreclosed property
There is also the option to avoid all this judicial situation, addressing options already awarded.
A foreclosed property is one that has already been released from any judgment, facilitating its purchase and possession. For the most part, it is the mortgage institutions, legal firms or specialized companies that initiate any legal act to obtain the rights and, subsequently, put the property for sale at an accessible price.
Unlike the auctions by judicial auction, it is possible to pay the payment of a foreclosed property with the help of a mortgage loan.
How to obtain a foreclosed property
The process to buy an adjudicated property will depend on the institution where you request it. Only banks have a wide catalog of properties at very low prices, with the traditional requirements for acquisition. Institutions such as Infonavit invite the participation of auction of abandoned units, especially for moral companies or developers who can make wholesale purchases.
Before making a purchase, verify the current status of the home, as some may continue in the act of release, so that your possession will take more time. Remember, it is advisable to choose those who have already completed the trial.
Buying a property in foreclosure can be a somewhat risky operation but good results if you do it with the right advice, especially if what you want most is to see your savings grow. Visit our mortgage deremates section to see the available offers we have for you.
Source: Blog Vivanuncios.