Zack childress tips foreclosed properties are considered to be non-performing assets as they are sold under-market price; there are different ways to purchase these assets and Zack Childress educates the investors in detail about these distressed homes.
These non-performing assets can be purchased through any one of the 4 ways
This is a phase where the owner still holds the property but has not paid mortgage dues and it is in foreclosure stage. You can purchase this property when lender agrees to accept the offer which is less than the outstanding amount due on the mortgage loan and by which he terminates foreclosure. It is also called the short sale.
A public auction is held and the foreclosed home is open for sale, the highest bidder is entitled to purchase this property.
The lender owns this property and is sold when purchaser bids for a price. The buyers can approach the lender to get the list of REO properties for sale.
Slow process and requires lot of paperwork.
Also keep an eye on newspaper, foreclosure listing service, online public records and internet which provides all these information as well. Comparing all the 4, the REO properties are considered to be easiest way to purchase as well as safest. Though there would be more competition, the value of the property is less. On the other hand, the price you bid at the auction is the value you chose to pay whereas the value of REO property is decided by the lender who can fix it in such a way that he gets profit.
Although you save a lot while purchasing a foreclosed home, you need to know nook and corners before you get yourself involved in the project.
The percentage of discount you avail while buying the distressed property varies according to the city you reside in. The average discount you avail for a REO property is much lesser than foreclosed home purchase in an auction.
For first-time homebuyers, Zack Childress recommends REO properties as they are considered to be safe, it is easy to deal with the bank rather than lenders and previous home owners. Property title is free of liens, the bank searches for the title extensively before selling the home to the buyer. They are considered to be non-performing asset for the bank and try to sell them off quickly without mortgage. You can avoid scam when you purchase through the bank.
Most of the first-time homebuyers seek MLS for foreclosed home sale. These lists are available to real estate agents.
The REO department in the bank will help you in providing list of non-performing assets. They may or may not appear on MLS. The investors living in small towns and cities rely on this department for the reliable information.
HUD home store contains listing of homes that are foreclosed by department of housing and urban development. These homes aren’t listed on MLS.
For further information on non-performing assets, browse REI quick cash system articles.