Some of the basics on foreclosures


3 types of Foreclosure Sales:

1) SHORT SALES

The homeowner has negotiated with the Lender to put his own house up for sale for less than is owed on the mortgage. The homeowner benefits by limiting the damage to his credit, the Lender benefits by not having to foreclose and sell the home themselves.

Look for these if you:

* Are looking for a traditional sale - a nice home to move into

* Have patience - Lenders are VERY slow to respond on offers, I've heard of cases taking up to three months.

2) AUCTION

The Lender has foreclosed on the property, and will try to unload it through an auction process. It is a standard auction where the auctioneer stands outside the home at the appointed time and takes bids or on the court house steps.

Go to these if you:

* You have ready cash - often $5 - 15K in cash is required on the day of the auction if your bid wins, and make sure to have your loan in place.

* You have the gambling spirt - many times access to the inside of the house is limited, and they are sold "As-Is."

* You have time and patience - You may be faced with evicting a current tenant, paying off liens, etc.

I would suggest some experience or work with someone before attempting an auction.

3) LISTED FORECLOSURE

The Lender has foreclosed, perhaps tried an auction, and now has listed it with a broker to be sold in a traditional manner.

Look for these if you:

* If you are able to put at least 10% down and close in 30 days.

* If you are willing to do/pay for some repair work if necessary. (These are also sold "As-Is.")

You can contact AZ Celebrity Properties for these kind of homes.