Trustee Sale

Foreclosure is a process in which the estate becomes the absolute property of the lending institution. It extinguishes a mortgagor's right of redeeming a mortgaged estate. It is a termination of all rights of the homeowner covered by a mortgage.

Buying Foreclosures

There are many ways to buy foreclosures: from the no cash, no credit methods taught on late night TV, to billion dollar bulk purchases. There are significant discounts available on foreclosures, but buying a foreclosure is not a get rich quick proposition. For those willing to work, and in some cases take some risk, foreclosures represent a unique opportunity for acquiring real estate at discount prices.

The first step towards buying a foreclosure, is to determine which stage of foreclosure to focus on. Each of the 3 stages has it's own advantages and disadvantages, and each requires a slightly different approach. Here is a brief overview of each:

Pre foreclosure

Prior to the completion of the foreclosure process and the owner losing the home, you can purchase the property from the owner. Today, many owners in foreclosure owe more on the property than it is now worth. In these cases, known as short sales, you will also need the approval of the bank. In some cases, pre-foreclosures will be listed with a Realtor® and be available for sale through the MLS. If the property is not listed, you can approach the owner directly, or preferably using a Realtor®. Pre-foreclosures are much like any purchase of real property and you typically have the opportunity to get inspections, title insurance, and financing prior to completing the purchase. It is also possible to purchase the property Subject To the existing loans; which is similar to assuming those loans, but does not necessarily require cash or good credit—this is the method often taught by late night promoters, and has risks that should be carefully considered.

If you are interested in purchasing pre foreclosures, "short sales" you can contact Mina Chae directly at (949) 466-2296 or email Mina at mina[email protected] We can provide you with a list of short sales according to your specifications in your desired locations.

Trustee Sale Auction

If the owner is unable to sell the property, refinance, or otherwise resolve the problem, the property is taken to auction. These auctions are referred to as Trustee Sales. The process for the auction varies by state, but typically properties are sold as-is, where-is, subject to existing loan and liens, and require payment in full and in cash, at the time of sale. Properties are also typically sold while the owner or renter is still living there, which means there is no opportunity to inspect the property, and you may have to do an eviction after purchase. By far the riskiest method of purchasing foreclosures, buying at auction can also offer the deepest discounts due to these risks and the limited number of buyers willing to take them.

If you are interested in purchasing properties at a trustee auction, call Mina Chae directly at (949) 466-2296 or email Mina at [email protected] for an appointment.

Bank Owned or REO

If an investor fails to bid at auction, the property is essentially sold to the bank and becomes bank owned. Within the banking industry, these properties are referred to as R.E.O., which is an abbreviation for Real Estate Owned. Most REO properties will be listed with a Realtor® whom the banks refer to as an REO Broker. These real estate agents often handle the eviction and clean up of the property, in addition to listing it for sale. Buying an REO is very similar to buying any home that is listed with a real estate agent, and you have the opportunity to do inspections, get title insurance, and get financing. Most banks, however, do require that the property is purchased "as-is", and may also impose other non-standard terms, so it is especially important to work with an experienced Realtor® that can explain these terms.

If you are interested in buying Bank Owned Properties, please feel free to search available foreclosures in our website.

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