Guide to Buying Plano TX Foreclosed and Bank Owned Real Estate
I recently returned from a Mortgage Banking convention in Texas and learned that the real estate has been relatively stable compared the real estate recession in most markets. However, they do have a foreclosure market. The following guide to Plano TX foreclosures will assist you in evaluating this market.
Plano TX property foreclosures, bank owned and REO (Real Estate Owned) are terms commonly used to describe properties which are held by a lender after an unsuccessful sale at a foreclosure auction or property obtained by a " deed in lieu ." Real Estate Agents market foreclosures for lenders after the property foreclosure sale. Home buyers can purchase great values as lenders are motivated sellers and don' want to hold properties.
When a Plano homeowner defaults on their mortgage loan, the lender begins the appropriate procedure for acquiring the legal right to sell that property at auction in order to satisfy the balance owed on the mortgage. Lenders in Texas have the option of going to court in a legal action or out of court to foreclose. In most cases, the lender proceeds to a foreclosure outside the courts. Compared to many states, it is very easy to foreclose on properties and the process moves quickly. The entire foreclosure process can take about three months and is one reason you may find buying possibilities for Plano TX foreclosures. Additionally, it could make it difficult for a home owner to try and do a short sale as the process often involves additional time negotiate a sale with lender approval.
Plano Texas Short Sales or Pre-foreclosure Values
Most property owners in financial difficulty will explore all possibilities of selling their home to save the property from foreclosure. Home owners can be current on their monthly obligations or have missed a payment or two which can reduce their options in negotiating with the financial institution to accept less than the mortgage balance. The lender can negotiate a "short sale " when presented with an agreement to purchase. Obtaining acceptance for a Plano TX short sale can be quite a lengthy and challenging procedure. Additionally, there aren't any guarantees that the financial institution will accept a deal at or above the listed price or any feasible contract presented.
Obtaining Plano Texas Homes at Foreclosure Auction
In Tx, the legal procedure mandates that foreclosure auction be held on the first Tuesday of the month. The auction is carried out in public at the county courthouse between the hours of 10 a.m . and 4p.m. The highest bidder, which is typically the mortgage lender, will obtain the property by paying cash once the auctioneer completes the process.
For most potential buyers, purchasing at a foreclosure auction is a " high risk " undertaking and, in most cases, buying from the lender after the auction is a better alternative. If you are familiar with the process and have purchased other foreclosure properties you may have success at the auction. Because of this, not many Plano TX foreclosure auctions end with the sale of the property to a bidder other than the financial institution. The lender takes back the title and takes possession of the property.
Plano Bank Owned or Foreclosed Property
Keeping property is a costly process for lenders so they are motivated to sell quickly. Additionally, managing a foreclosed property or home may see additional reductions in value and is a " headache ". Financial Institutions which have considerable REO inventory will have a separate department to manage their inventory.
Plano real estate brokers typically manage and market foreclosed properties for lenders after the auction. Bank owned listings compete with other available listings and buyers are able to scrutinize and investigate property before the final purchase. Some financial institutions will settle repairs and concessions, but in most cases their preference would be to sell "as is" at a "discounted price".
Lenders market their properties "as is" but do allow complete home inspections of the property. Lenders make sound business decisions when unknown material defects are found. They will reduce the sales price or consent to repairs. Lenders focus on the business aspects of the transaction and are simpler to negotiate with as compared with a home owner. Emotions do not enter the negotiations for lenders as the focus on the business at hand. Most buyers will discover better values in ordinary inventory as opposed to Plano TX foreclosures. It's an old myth that " foreclosures " are a bargain.
Negotiating a Contract for a Plano Property
Due to the fact financial institutions do not usually work on weekends and due to the volume of REO inventory, the negotiating process might take more time and create frustration for the buyer. Be sure that your offer includes your credit approval which demonstrates your qualifications as a purchaser since the lender is much more motivated to negotiate with a qualified buyer.
The best values in the foreclosure market are distressed properties that need considerable repairs. Financial Institutions will sell for representative market value, so properties in good condition and desirable locations will attain reasonably high prices. Since most potential buyers don't have the resources or the interest in major repairs to a home, these represent the best values in the market.
I also understood from local lenders that there are foreclosures in the Woodlands TX, one of the higher end and appreciating markets in the state.