When a home owner fails to pay a loan, the lender forecloses on the property in order to sell it and satisfy the debt. The process varies in each state, but will typically take an extended time to process. This article offers MA foreclosure explanation for buyers.

Bank Auction Sales

A bank holds an auction when foreclosing on real estate. Securing properties directly at an auction has many risks to potential buyers. Buyers have no option to access the inside of the property (it sometimes continues to be occupied occupied by the previous homeowners). A large up-front deposit is necessary to participate in an auction. Due to this, real estate is do not always sell at auction. The mortgage company will instead take ownership, turning it into bank-owned property, a term that people will often see in listing details.

Bank Owned Homes for Sale

If a property does not sell at auction, the eviction proceedings start and the home is placed for sale. It is uncommon for any repairs to be completed, so foreclosed properties are generally sold as-is. Additionally, little information on previous repairs is given. As a result, it is a risky alternative for buyers. Foreclosed real estate almost always sell for less due to these factors.

MA Foreclosure Explanation For Buyers

Buyers hoping to get great deals often inquire about bank-owned homes, but it is helpful to understand the risks of foreclosures. Buying at auction is not feasible for most people. Because the past occupants could not make mortgage payments, they most likely could not complete general maintenance on the residence either. Buyers must therefore anticipate many repairs. Some real estate brokers are experienced in helping buyers navigate through the process of purchasing a foreclosed property and may be a big help. This article on MA foreclosure explanation for buyers was compiled by Peter DaMore at Law Offices of Peter T. DaMore Jr.. Contact Peter at 781-229-7900 or pdamore@ptdlaw.com with questions or for additional information.