With all the foreclosures that are going on these days, there are some real bargains among the Georgia foreclosures. Before you sign the dotted line, you might want to know some information about the foreclosure process so that that dream home does not become your worst nightmare.
Nationwide, one of the best ways to find bargains among homes is through a pre-foreclosure sale. In this type of sale, the owner has defaulted on his loan and has received a notice of foreclosure from the lender. Often you will be able to buy the home for less than market value by paying slightly more than the owner owes on the mortgage.
In Georgia, homeowners only have 30 days from the notice of default before the property can be foreclosed. This time is longer in other states, so you should be aware of the short fuse when considering pre-foreclosed property in Georgia.
Once the time between the notice and actual foreclosure is passed, the home is foreclosed. Homes are offered for sale at an auction on the courthouse steps of the county courthouse. Purchasing a home through a foreclosure auction is very risky. You will purchase the home sight unseen. You must pay the full amount of your winning bid in cash. You will not be issued any title insurance on the property. While you may get the home at a big bargain, there can be debts due that will come back to bite you when purchasing property in this manner.
If there are no bids for the property or if the bids are not sufficient to meet the debt on the home, then the bank will take possession of the home. It will be listed for sale with the realtor. If there are very few bank owned homes then they may be listed very near the market value. If there are several of the homes, then the bank may offer them at lower rates to free up their money for other purposes.
Government foreclosures work somewhat differently. These properties had subsidized and guaranteed loans either through the VA or the FHA. After foreclosure, the government owns the homes and bids have to be made through certified Realtors that the government has approved to take the bids.
During the first forty five days a property is on the list, it can only be sold as an owner occupied home. If you are looking for a home for your own family to live in, this can give you a real advantage as you are not competing with investors that want to flip the home. After the 45 days is up, the investors can also place bids on the properties.
While Georgia foreclosures can offer some bargain prices, there are some things of which you should be aware. Homes sold on the courthouse steps may are a high risk. Pre-foreclosure properties are often a better value than those owned by the bank. Government owned properties have a different procedure for purchase than do other foreclosed properties.
Perhaps you have heard that there are some bargains to be found among all of the Ga foreclosures . We have got the inside scoop on how to find fantastic Ga foreclosure properties.
