Bedford New Hampshire Foreclosures for Sale - Bank Owned Real Estate
Bedford NH foreclosures, bank owned and REO (Real Estate Owned) are terms commonly used to describe properties that are owned by a lender (investor, financial institution; typically a bank), after an unsuccessful sale at a foreclosure auction or property obtained by a "deed in lieu." The lender will then resell the property by direct sale or market their inventory through a Realtor. The lender will price the property for a quick sale as they have no interest in maintaining a foreclosed asset.
The foreclosure process begins when the homeowner defaults on their mortgage. The first step for the lien holder(s) is to obtain the right to sell at auction. In NH, this process takes a minimum of 75-90 days and if the homeowner contests the process in court or files bankruptcy the delay can be significant. To obtain current bank owned and short sale listings go to Bedford NH foreclosures. You will receive updates of new foreclosures as they come on the market.
Bedford NH Short Sales
There are cases where a home owner will attempt to sell their home before the lender begins foreclosure proceedings. The home owner is either already behind on their mortgage payments or will not be able to sell for a price that the net proceeds and additional resources would cover the balance owed on their mortgage. This is commonly referred to as a short-sale and requires the lender's approval. Obtaining approval can be a long and frustrating process. Additionally, there are no guarantees that the lender will accept an offer at or above the listed price or any viable contract presented.
New Hampshire Foreclosure Law
In New Hampshire, foreclosure is done by various methods which include Judicial or Non-judicial methods and by special methods such as Entry under process, Entry and publication, or possession and publication. The typical process, depending on the method, is approximately 60-70 days long. Publication of the sale requires 24 days in New Hampshire. In a NH foreclosure there is no right of redemption and deficiency judgments are permitted.
In New Hampshire judicial foreclosure is similar to strict foreclosure in other New England states. A lender needs to file a complaint against a borrower and obtain a court ruling from the county court. If the court finds a borrower in default, it provides the borrower time to pay back the debt. If borrower does not pay within the allowable time frame, the court orders sale of the property.
A non-judicial foreclosure is conducted only when a power of sale clause exists in the deed of trust/mortgage. This clause pre-authorizes the sale of a property to pay off the balance of the loan in the incidence of a buyer's default. In such cases, power is given to the lender or its representative (generally referred to as a trustee) to sell the property.
Buying Bedford NH Real Estate at Foreclosure Auction
For most consumers, purchasing at a foreclosure auction is a "risky" undertaking and, in most cases, buying from the lender after the auction is a better option. Experienced investors understand the process and may have success in taking the risk. As a result, not many Bedford NH foreclosure auctions end with a bidder being successful with an accepted offer. The title then reverts back to the financial institution holding the lien. These properties are referred to as REO (Real Estate Owned) or Bank Owned properties.
Bedford New Hampshire Foreclosed or Bank Owned Real Estate
After a bank (lender, financial institution) forecloses on the property (after an unsuccessful auction), they mitigate items owed by the prior borrower, such as homeowner association fees. The lender also attempts to remove any tax liens against the property. The current owners are usually evicted or provided financial incentives to vacate.The property is cleaned and minor repairs are made to the property. The lender hopes to obtain a higher net sales price with minor improvements.
Banks want to sell foreclosed property quickly because they don't want to tie up their money these assets. Additionally, managing a foreclosed property may see further reductions in value and is a "headache". Lenders that have significant REO inventory often have a separate department to manage their inventory.
Most lenders hire experienced Bedford real estate agents to market their properties and list their inventory in the Multiple Listing Service (MLS) to ensure full market exposure. Bank owned listings compete with other available listings and buyers have the opportunity to inspect and investigate property prior to the final purchase. Some lenders will negotiate repairs and concessions, but in most cases their preference is to sell "as is" at a "discounted price". Go to Bedford NH foreclosure listing service to receive a list of bank owned property.
State and Federal requirements regarding property disclosure must be followed by lenders. They usually disclose that they have no knowledge of the property and can make no representations as they have never occupied the property. Banks may or may not provide incentive financing on their REOs but in most cases, this would apply only to property that was in very bad condition. Property that has major structural defects or will require extensive repairs will be the buyer's best value.
Buyers with accepted contracts have the option to conduct full home inspections even though the property is being sold "as is". If major unknown material defects are found, the lender usually will negotiate to either a substantially lower price or make the repair. Generally, negotiating with a lender is an easier process than negotiating with a homeowner. Lenders are typically unemotional about the process and are interested in making a "good business" decision for the company. It is not in a buyer's best interest to attempt to renegotiate a contract over trivial items that were disclosed or obvious prior to negotiation of the contract.
A Bedford NH bank owned property isn't always the best value for a consumer. It's an old myth that "foreclosures" are a bargain. Visit Bedford NH homes for sale to view all available listings for sale.
Making an Offer on a Bedford Property
Before making an offer, have your agent obtain all available disclosures and information on the property and ask questions such as: Are there any documented inspections? Has the lender agreed to any repairs not completed? Is there a special "as is" form?How quickly will the lender respond?How is the offer negotiated? Since lenders do not typically work on weekends and due to the volume of REO inventory, the negotiating process may take longer and create frustration for the buyer.
Make sure that your offer contains your "credit" approval which demonstrates your qualifications as a buyer as the lender is more motivated to negotiate with a qualified buyer.
Understand that lenders will sell at "fair" market value and do not expect "fire-sales" that you have seen of heard of in the media. As mentioned earlier, properties that need substantial structural and mechanical repairs will be negotiated aggressively There are fewer buyers qualified to buy these properties so lenders will offer greater discounts.
Virtual Homes real estate agents will assist you in the purchase of Bedford NH foreclosures and bank owned real estate for sale. In addition, we can represent you as a Buyer's agent and represent your interests in the property search, research, negotiations, home inspection and closing of the transaction.