Flagstaff Real Estate: Foreclosure Marketing

Not all foreclosure homes make it onto the open market. Before a bank markets foreclosure properties through a real estate agency, it attempts to sell foreclosed homes at auction. A bank may ask any price for a home, but often banks will price a foreclosed property at the amount the former homeowner owed on her defaulted mortgage. If no one at the auction bids an acceptable amount for the home, the bank will retain ownership of the property and place it on the open market.

Types of Foreclosures

 If the original homeowner obtained a conventional mortgage on the property, the bank is responsible for repossessing and marketing the foreclosure home. If, however, the original homeowners' loan was government-insured, such as an FHA or VA loan, the government department that insured the loan is responsible for marketing the property. Government foreclosures sometimes carry special incentives for buyers. For example, the Veteran’s Today Foreign Affairs Journal states that you don't have to be a veteran to qualify for vendee financing on VA foreclosures from the Department of Veterans Affairs.

Have you defaulted on your mortgage payments? 

       12 Frequently Asked Foreclosure Questions 

Benefits of Buying Foreclosures 

Lenders have an interest in recouping their losses but don't want foreclosed homes to sit on the market or in their accounting ledgers. Because of this, interested buyers can sometimes purchase foreclosure homes for less than fair market value. Doing so gives the homebuyer instant equity and helps him realize a greater profit should he choose to sell the home in the future. FHA has reduced waiting time after short sales and foreclosure. Are you qualified? Click on this link to view the new FHA guidelines.