Dealing With Foreclosure Understanding The Process So You Are Aware Of Your Rights

There are many reasons why homes go into foreclosure. Dealing with foreclosure is going to be difficult no matter what the cause. So if you’re facing a foreclosure it’s crucial that you understand as much as possible about the process and what your options are.

Why do homes go into foreclosure?

When a homeowner is late with a certain number of payments or stops making payments, the lender has the right to start the foreclosure process, depending on the terms of the mortgage agreement. It’s a good idea to be aware of what this “magic” number is so you can do whatever is necessary to avoid reaching it.

How long can homeowners remain in their homes once they go into foreclosure?

The law varies from state to state, so there is no set rule. In some states, homeowners can remain in the home for about a year. But in other states, the time frame may be as short as a few months. And in reality, there are some homeowners who don’t move out even when their home has gone into foreclosure. In that case, they may decide to wait for an eviction notice before leaving.

What are redemption laws and what is a period of redemption?

When a home is foreclosed upon, many states allow a set period of time where the homeowner can repay any overdue payments on the mortgage. This is a redemption law and what it means is that the homeowner is able to reclaim his property if he meets the conditions set out. These conditions include repaying all monies owed within a specific time frame. It’s even possible to use the redemption law to reclaim a home that has been sold at auction.

What is meant by short sale and how does it work?

With a short sale what happens is that the property is sold but the net gain is less than the total amount owed. The lender though agrees to take the lesser amount. But, in some cases, the seller may still be on the hook for the difference between the total owed and the proceeds of the short sale. The advantage to the seller is that the foreclosure won’t show up on their credit report. The disadvantage is that you have to pay the difference, even though you’ve sold your home.

What is deed-in-lieu of foreclosure?

In this case the homeowner agrees to give the lender the deed to the house. In return the lender forgives the mortgage and cancels the foreclosure proceeding. You should be aware that this type of agreement will affect your credit to pretty much the same extent as a regular foreclosure.

Being informed may help when you are dealing with foreclosure, so you are able to decide on your best options.

If you’re dealing with foreclosure learn about 6 practical steps you can take to avoid foreclosure. If it’s too late for that, find out how to stop a foreclosure by going to http://getforeclosurefacts.com

How To Buy A Property – Tips On Inspecting Properties

The first thing you need to do is to avoid any big surprises if you might be taking into consideration a brand new real estate purchase, hence getting a specialized inspector for properties could reduce a lot of the unwanted surprises about your prospective residence early in the home buying process.

Always remember, though that you’re not necessary to conduct an actual home examination prior to the signing the preliminary contract, thus it is probably best to understand as much as possible about the condition of the property through an straightforward discussion with the seller and also performing your own ‘mini’ inspection by which you could check for standard structural defects or potential problems.

Many sellers will probably be open to having you check the house before you sign the preliminary contract, and this gives you a leveraging influence while bargaining the sales cost. The book ‘Smart Consumer’s Guide to Home Buying’ (Barron) really encourages all potential homebuyers to put together a checklist and note every problem and areas of concern before the contract signing. “If you are thinking about buying a house that will need renovation or upgrading, the more value will be derived from your mini-inspection,” explains the authors of the book.

Think about creating an inspection list for a property inspection survey in order to carry out a thorough of the property and also note down the appearance and overall condition of the said real estate. Here are some crucial areas to cover:

Find out about how old the home is – you will want to ask the seller specifically when the house was built, how many times the property has been renovated, and check if there are any architect or engineering plans on hand.

Check out the groundwork for potential problems – check for significant cracks or visible water conditions in the property or in the basement. Ask concerning flooding and issues that are weather-related which have taken their toll on the property in previous seasons.

Examine the interior for potential problems and other damages – you’ll have to make sure that the doorways are functioning properly and also that all the rooms’ walls and partitions are flat, even and free of cracks. Take note of anything that may have to be repaired immediately and make sure you also take pictures of potential problems that particularly needs repair. You’ll have to check for problems of odor or molds and ensure all water entry areas are crystal clear and working.

Check out the external details of the house for damages and potential problems – do all the doors and windows have sufficient insulation? Are they functioning well? Make sure the doors and windows don’t have breaks as well as any noticeable damages.

Review heaters and air conditioning appliances – inquire regarding the average cooling and/or heating costs over a year, and also find out how long it has been since the appliances were installed. Sometimes, you may need to get a new heat and air conditioning appliances.

Aside from the actual examination survey report, you may consider taking images and also short video clips with a digicam so you can go over the actual inspection in more detail at a later date. The extra footage might provide you an upper hand during the negotiation process with the sales agent.

About the Author: Alexandria P. Anderson is a Minnesota Real Estate agent that helps people to find and purchase Condos in Minnesota and other properties in the Twin Cities of Minneapolis and St. Paul.