Pre Foreclosures in Atlanta – A Brief
Close to $70 million in the form of federal funds is being provided to combat the problem of foreclosures in Atlanta. Relief measures such as these, and the existent low prices of residential property, are leading many people buy homes in Atlanta. Foreclosure homes are predominantly being targeted because of the discounts that are associated with them.
A home goes into pre foreclosure when the home owner is served with a foreclosure notice (a notice of default). This happens when the home owner repeatedly misses making the mortgage payments. The notice informs the home owner that if the default in question is not taken care of in a stipulated period, the lender will auction off the property to recover the balance that remains to be paid on the loan.
The borrower can then take care of the default in the allotted time and stop the foreclosure proceedings. In case a home owner feels that foreclosure is imminent, he/she can decide to sell the home before the auction. If the home is sold during this period, it is referred to as a pre foreclosure sale.
The principal reason for a home owner to sell the home would generally be to gather funds so that the lender can be paid back. Paying back the lender results in foreclosure being avoided. In cases where the amount that is owed is significantly lesser than the home’s valued price, the home owner gets to keep the remainder of the amount after the sale. In these cases, the room for negotiation also increases.
If the amount that is owed is more than the home’s valued price, the lender can allow the home to sell for lesser than what is owed and waive off the remaining amount. Lenders would do this because if they were to foreclose on the home later, they would have to incur substantial costs in the process.
An inspection of the home you wish to buy is absolutely called for. Check for any damage that the structure might have, and also check to see if the basic amenities are in working condition. Professional home inspector’s are easily available and should be used if you have any doubts about the process.
You should also go through the county’s public records to see if any other loans are attached to the home or if there are any arrears in taxes. These liabilities are generally transferred to the new home owner.
Looking for homes in preforeclosure can be done over the internet. News papers and news letters can be referred to for listings. Real estate agents could also be approached as home owners facing foreclosure might have approached them too.
Some homes in pre foreclosure have been sold very cheaply (for as little as half the property’s value). While you cannot expect a bonanza every time, discounts are the order of the day.
HUD Fair Housing Equal Opportunity