Buying Foreclosures in Columbus – Facts: Why and How
A foreclosure is simply a home mortgage that has been ‘pre-closed’ by the bank.
The homeowner has not kept up with the monthly mortgage payment for several months. The bank has appealed to the owner, but the missed payments are racking up.
Finally, the bank sends a notice that it’s over- the mortgage agreement has been violated and they are closing it out. The owner has to either pay the balance of the mortgage in full, or the bank will take over ownership of the home. At a notified date, the lender will be changing the locks, and if necessary, forcefully evicting the homeowner from the house.
This is frequently a lose-lose situation. The homeowner can do serious damage to the house before he/she leaves. The bank has the challenge of re-selling a home that is distressed and below market value. The lender is going to lose money. In addition, they have to pay for taxes, lawn maintenance, possible repairs, and extra employees to manage the paperwork process.
There can be advantages for the savvy buyer. You get a home that is cheaper than comparable homes. If you’re handy, you can make needed repairs. But be warned: the buying process can be tedious, the house sells ‘as-is’ (and there may be issues that are not obvious), and the spurned lender can be cantankerous. It’s critical to work with a knowledgeable Realtor who will advise you on pricing and work through the process.
Contact the Columbus Team today or call at 614.888.6100. We’re experts at completing home sales on foreclosed homes in today’s market!