A Guide to Pre Foreclosures in Boston
Foreclosures in Boston are still on the rise. An increasing number of families are going through tough times and risk facing foreclosure. For a lot of home owners, the federal funding is here a little too late, but for the housing sector in general, some relief can be seen.
Largely due to the ongoing foreclosure fiasco, prices of homes in Boston over the recent past have fallen noticeably. With relief on the way, and some stability in sight, homes are starting to find buyers again. Home buyers look at foreclosure homes as a good opportunity to save some money. Some of the best deals are made during the pre foreclosure stage, where discounts ranging from 10% to 20% are fairly common, and instances of up to 50% discounts are not unheard of.
The pre foreclosure stage commences once the lender issues a default notice to the borrower (home owner) which states that upon non payment of the dues on the mortgage in question, the home will be put up for sale at an auction. From this point on, the homeowner can try to sell the house anytime before the auction.
A home owner in pre foreclosure would generally want to sell the house so that the amount that remains on the mortgage can be paid back to the lender. By doing this, the home owner can avoid foreclosure and also the negative credit score that is associated with foreclosure. This is the reason why many home owners in pre foreclosure are known to accept seemingly low offers for their homes.
There are instances when the amount that needs to be paid back exceeds the property’s existing market value. In such instances, the lender who holds the mortgage can allow the property to sell for lesser than the balance on the loan and waive the remainder of the amount off. This is primarily because in foreclosing upon a house, they (lenders) would have to incur substantial costs.
If you intend to buy a pre foreclosure home, make sure you check for any other loans that are linked to the home, or if there are any arrears in tax payments.
You could go through the internet to find pre foreclosure listings in Boston. Banks and real estate agents can also be approached for listings, and pre foreclosure listings also appear in local newsletters and newspapers.
You should ideally go through all available resources before making your decision. After all, decisions like these are not made everyday.