What is Foreclosure?

Foreclosure is a process that allows a Lender to recover the money owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when an Owner defaults on loan payments and the lender files a public default notice. The foreclosure process can end one of four ways:

1. The Owner pays off the default amount to Reinstate the Loan during a grace period known as pre-foreclosure.
2. The Owner sells the property to as a Short Sale, (hot link to short sale page) allowing the Owner to pay off the loan and avoid having a foreclosure on his/her credit history.
3. A third party buys the property at a public Auction or Sheriff’s Sale at the end of the pre-foreclosure period.
4. The Lender takes ownership of the property, usually with the intent to re-sell. (REO) The lender can take ownership through an agreement with the Owner during pre-foreclosure or by buying back the property at the public Auction/Sheriff’s Sale.

FORECLOSURE BUYING OPPORTUNITIES 4 U

There are three ways you can buy foreclosures

1. Pre-Foreclosures or Short Sales is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when an Owner cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the Owner. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the Owners. This agreement, however, does not necessarily release the Owner from the obligation to pay the remaining balance of the loan, known as the deficiency. Short sales are appealing because almost all the information you need is available, you can inspect the house and conduct a title search so you won’t have any surprises.
2. Auctions or Sheriff Sales Auction or Sheriff’s Sale as they are usually called in Dane County in are typically held in the county clerk’s office in Madison Wisconsin. Sheriff’s Sales have greater potential for profit, but a greater potential to lose your shirt. You have to know what you’re doing…in an auction, buyers cannot inspect the home in advance of the Sheriff Sale, they have to pay in cash and some times the current homeowner simply refuses to move out. It then becomes the buyer’s responsibility to evict the old owner. Sheriff’s Sales tend to attract real estate investors seeking a great bargain that they intend to flip (resell) for a quick profit. If you’re looking for a home to live in, an auction is probably not the way to go.
3. Real Estate Owned properties or (REOs) represent the third way to buy foreclosures. REO is the least risky in terms of what you’re buying, you get to fully inspect the property, demand a clear title, and the sale can be subject to getting a mortgage. Most banks sell foreclosure properties through a broker. They are considered the safest and the properties tend to be in better shape. The Bank REO’s are less risky and can still be profitable with the right purchase.

How We Help You

• We Track the REO/Short Sale Market
• Provide you current and past market data on each property
• Help you Better Understand the Foreclosure Buying Process
• Be Another Set of Eyes & Ears – so You Don’t Miss Anything
• Help You Negotiate Better Sales Contract Terms
• Provide you with Area Knowledge
• Help to Negotiate a Better Price
• Share our Market Experience.

We Will Help you Make the Right Purchase at the Right Time & at the Right Price.