What should you know about foreclosures in Scottsdale? A foreclosure refers to a situation in which the lender legally terminates a borrower’s residence. The definition is: a legal proceeding initiated by a lender to repossess the collateral for a defaulted loan. Technically speaking, this refers to a mortgagor’s equitable right of redemption and the lender‘s extinguishment of this right. If the borrower defaults on the terms of the loan, then the lender will make an effort to foreclose on the property, in order to repossess it. Default is usually caused by non-payment.
When the foreclosure process is completed, the lender can attempt to sell the property at an auction. The bank will attempt to make back some of its loss, including mortgage fees and legal costs. What should be noted however is that foreclosure is the start of a long legal process, and it can be worked out. Foreclosure proceedings start with a formal demand for payment through a letter. The letter is called a Notice of Default. It is usually issued after three months of non-payment. In essence, this is a threat to sell your property and to terminate all rights of the borrower, evicting the family from the house.
The key to stopping Arizona foreclosures is to negotiate with the lending company. You may be able to work out a different arrangement plan, or perhaps even a short sale. By withholding payment and not attempting to contact the bank or lender, borrowers are only making circumstances worse. Unfortunately, not all families can avoid foreclosure altogether. When a house is foreclosed it can be sold at an auction to a new buyer. The good news for the new buyer is that he or she can buy the property at a much lower price than market value. Now is a great time to take advantage of purchasing one of these Scottsdale foreclosure homes at a bargain price.
What should you look for when buying a foreclosure? Before investing in Scottsdale foreclosures make sure you look at the home in question and the neighborhood that surrounds it. Always inspect the property first and see if there are any renovations required, and how much they may cost. Make sure the home is no longer occupied by an angry homeowner, because you want a hassle-free, harassment-free relocation. Also, check for litigations and tax dues on the property. You can even check with the local tenants in the area to see how high rent is and how strong the local economy stands.
Don’t try to buy a foreclosure property on instinct. Don’t go at it alone. The Holm Group can help you find a Phoenix or Scottsdale foreclosure property the right way. You can search for foreclosure listings on the site or learn more about Valley Area homes in greater detail.
Call 480-206-4265 now for assistance with Phoenix, Arizona real estate foreclosures.