Fairfax County VA Homes for Sale – Stages of Foreclosures
When someone doesn’t make the payments on their Fairfax County home, the bank can take the home away from them. This is called a foreclosure. You probably know that a foreclosure is usually a good deal for buyers. However, home foreclosures happen in stages, and these stages can affect when it’s the right time for you to buy Fairfax County VA homes for sale. Here’s what happens when the bank forecloses on a home.
- Default Seller. When a seller has missed payments, they are in default on their loan. At this point the seller is usually willing to negotiate, and you stand to buy the Fairfax County home at less than market value. However, the seller won’t be able to sell the property for less than they owe. If they have a second mortgage or home equity line, this may not be a good buy.
- Pre-Foreclosure. A bank issues a notice of default after a certain number of missed payments. At this point the home is considered pre-foreclosure and is still owned by the seller. The seller is still motivated and often willing to negotiate terms and consider a short sale. If the bank is willing to accept less than the amount owed on the home, you can still get a good deal. However, you may have to wait 45-60 days to close on the home.
- Foreclosure Auction. Once the bank takes ownership of the property, they will usually try to sell it through an auction. Since they will sell it for whatever is owed, you stand to get a great deal on the property. On the flip side, you will have to pay cash for the property and will purchase it “as-is.” This can be a problem if the sellers damaged the home before leaving.
- Real Estate Owned by Lender. Sometimes a bank sells property through a local real estate agent. The bank is usually motivated to sell the home and will negotiate terms like down payment and closing costs. The bank will pay the real estate agent’s commission, and you will get a clear title. You are also buying the property “as-is,” and the bank will not make any repairs.
Are you looking for a good deal on a Fairfax County home? I can help you find Fairfax County VA homes for sale. Call me today at 703-909-3939 or drop me an email at Steve@HomeSearchWebsite.com today to get started!
Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939
September 25th, 2008 at 11:55 am
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