Foreclosure is the procedure in which a lender seeks full payment for a loan by selling the property for security of the loan. The type of proceeding used by the lender will vary from state to state, and may also vary depending on the individual circumstances of the loan and borrower. There is an abundance of St. Louis area homes in foreclosure. Most foreclosure actions begin due to a default in payments by the borrower, although the lender may also initiate foreclosure due to the non-payment of a balloon payment, transfer of property or any other violation of the original note.
At STL Today Realty, we understand that difficult situations arise that might put you in a housing emergency. Whatever your problem is, don’t hesitate to give us a call at 636-485-0000 to discuss your options. We promise you’ll hear a caring voice on the other line. We’ll do whatever we can to prevent a foreclosure of your home. Some ways that we can help are through short sales, as-is contracts and lease purchases. We have several professionals trained to handle these types of situations.
Post-foreclosure redemption, which allows the homeowner to re-purchase the property, is more common in judicial foreclosure actions, and fairly uncommon in non-judicial actions. Saint Louis area lenders seem to rely on the Real Estate professional to get the most value for the property. The lender may seek to keep the homeowner in the property by altering terms of the loan, or setting up a repayment schedule, available on a case-by-case basis, to prevent either type of foreclosure. The homeowner has options available, and most likely will either modify the loan or allow the property to be sold as a short sale. For more details about short sales, please visit our Foreclosure Prevention Center.
If you’re interested in purchasing a short sale or foreclosure, click here for our most recent listings!
At The Jamie Leonard Team, we understand that difficult situations arise that might put you in a housing emergency. Whatever your problem is, don’t hesitate to give us a call to discuss your options. We promise you’ll hear a caring voice on the other line. We’ll do whatever we can to prevent a foreclosure of your home. Some ways that we can help are through short sales, as-is contracts and lease purchases.
Short sales allow you to sell your home quickly by working out a settlement with your lender(s) in which they will accept a reduced loan payoff. We’ll take care of the work dealing with your lender(s).
As-is contracts work well for homes in need of repairs that need to be sold quickly. We have several contacts that are willing to buy as-is homes in less than 24 hours in cases of homeowner emergencies.
Lease purchases help sellers avoid property loss and double payments. They are ideal for sellers who don’t have a lot of equity structure. We have several professionals trained to handle these types of situations.
IF YOU NEED TO AVOID FORECLOSURE CALL- 636-485-0000
REO (Real Estate Owned) is a home that the bank takes back from the owner that is not sold at auction. Typically, the bank will work with the homeowner to help them cure the default so they can avoid the foreclosure. Banks do not like being in the real estate business or having property on their books. The REO property is typically property that has a mortgage balance equal or greater than the value.
If you plan on attending a bank auction, you will also need to be prepared to not only pay the balance of the mortgage, but typically the bank will add on any other fees or costs that they have incurred up to that point. This could include accrued interest, attorney fees and other costs that have been part of the foreclosure process. The other problem with auctions is that the bank will want you to have cash in hand if you have a winning bid on a property. Banks will not typically give you time to line up financing and this can make it impossible for anyone other then a real estate investor to get in and purchase a home.
It is common to find most property being offered at an auction, actually have more owed against the home than it is actually worth. Few foreclosures actually end up as a successful sale. If the property does not sell, it goes back to the bank and becomes a Bank Owned Property, REO (Real Estate Owned).
Buyer Beware! At an auction, you are not going to have the time needed to research any other liens that may be recorded against the property. For Foreclosure Expert Advice, contact Jamie Leonard.
If you are dealing with REO's, remember that the properties are now owned by the bank and free of any liens. The banks are still going to try and get the most money they can for the property, but they are more willing to take a quick loss and move on.
At this point the bank may have to evict the tenant, do some repairs to the property and get it ready for sale. Other items the banks will handle may include removing IRS tax liens and paying off HOA dues. The largest benefit of buying bank-owned property is you will have the opportunity to get title insurance. Title insurance will ensure that you do not have any additional liens recorded against the property. One issue with buying property in distress is that you have other liens that have to be satisfied, which can make it very difficult to get clear title insurance. Bank owned property will come with a clear title.
Be aware though, REO (Real Estate Owned) property may not be right for you. Seek advice from a Saint Louis Real Estate Professional before submitting an offer. If you do make an offer and move forward on the purchase, make sure that you are paying a fair price compared to others in the area. Don't get into a bidding war because the property appears to be a good deal. Many times, people chasing REO or foreclosure property end up paying market value because they get into a multiple bidding situation. Foreclosures are not always the bargain you have been waiting for.
For more information on short sales, click here.
Every bank is a little different when it comes to selling REO property, but one thing remains the same: They all want the highest price possible and do not want to sell the property cheap. In many cases the bank will turn to a short sale package before considering foreclosure. Banks usually have a separate department set up to only handle REO property.
Typically, when you make an offer to a bank on an REO property, you can expect to receive a counter offer. Sometimes it will be much higher than expected, but banks do this to show investors that they are attempting to get top dollar for the property. If you really want to buy this home, expect that you will have to make a counter offer to the banks counter offer.
If the offer is accepted, you may experience a delay getting a final approval or documents from your experienced Saint Louis area Real Estate professional.
Short sales are getting tougher for sellers and buyers and banks are more willing to foreclose now than ever before. Banks are putting greater demands on short-sale sellers and buyers and are becoming less hesitant to foreclose if sellers (and buyers) don’t agree to their terms. This practice is hurting sellers experiencing true hardship and honest buyers who just want to buy a place to call home. Before making a move, be sure to consult with The Foreclosure Prevention Center.