5905 Westheimer Dr.
Brentwood, TN 37027

Bank Owned Brentwood Home

Bank Owned Home In Brentwood.Great Location Move In ConditionHow Does Foreclosure Work?In today’s economy, the worst since the Great Depression of 1929, more and more homes are falling into foreclosure.According to the Mortgage Bankers Association (MBA), the U.S. is “embroiled in the worst foreclosure crisis in recorded history. In 2007, more than 14% of subprime borrowers are defaulting and prime borrowers are beginning to follow suit.”Many Americans refer to themselves as ‘homeowners’. Most ‘homeowners’, however, do not unconditionally own their home … they, in effect, borrow it from a lender (or a number of lending institutions). If homeowners fail to make the monthly payments specified in the mortgage agreement, the lender has the legal right to repossess and sell the house in a process referred to as ‘foreclosure’.Foreclosure is usually not an option homeowners choose. The homeowner is most often a victim of job loss, increased credit card interest rates, illness, divorce or necessary relocation. Nor is foreclosure a simple process: the lender cannot simply evict the homeowner and take possession. Various state laws and regulations protect both parties from unfairness and fraud. The Foreclosure ProcessAlthough the laws vary from state to state, the basic foreclosure procedure is the same:1.The homeowner fails to make mortgage payments.2.The lending institution files a public ‘notice of default’.3.If the homeowner pays the defaulted amount within a time period specified by state law, the homeowner reclaims the property and foreclosure ends.4.If the homeowner does not pay the defaulted amount within a time period specified by state law, the lending institution takes possession and sells the property to pay off the original debt.Opportunities for BuyersForeclosed homes or homes in foreclosure typically sell at lower prices than non-foreclosure property. The lower prices create opportunities for those seeking a first-time home, a bigger, better home, or an investment property.Interested buyers can purchase a property (1) directly from the homeowner before the foreclosure is final or (2) with the trustee after the foreclosure if final. However, there are many risks and factors to consider.Buying from a Homeowner in ForeclosureThe homeowner has a right to live in the home for a period of time after the ‘notice of default’. In some states this time period can be less than three months, in others almost a year.The homeowner has a right to bring the mortgage up to date and regain ownership by paying mortgage principal and interest and foreclosure costs.The homeowner is required to disclose rental agreements or other equity purchases … failure to do so can result in lawsuits or revocation of sale. Buying from a Trustee After ForeclosureThe buyer must submit sealed bids … the greater the number of bidders, the less chance each buyer has of winning the bid.The buyer must make a sizeable down payment.The buyer must submit proof of sufficient financial ability to acquire the property. The buyer cannot impose contingencies on getting financing for the transaction.The buyer often cannot inspect the property before bidding. The sale is “as is”.  Damaged property could require significant investment to restore.The buyer is responsible for evicting an owner or tenant who refuses to leave the premises and to bear the cost of the eviction process.SummaryWhile foreclosures present opportunities for home buyers, they also present considerable risk. If you are not experienced in buying these property types, you should consult a licensed real estate agent specializing in this market.Provided By Reggie Woodgett RDCPRO, CSPREO Marketing DirectorREMAX Elite

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