Pre Foreclosures in Seattle – An Overview

Now is being looked upon as a good time to buy foreclosures in Seattle, not only because of the existing low prices, but also because the federal funding promises to bring some stability into the housing sector.

Foreclosure proceedings are initiated by a lender when the home owner is unable to pay the mortgage payments in a timely manner. A notice of default/default notice is sent to the home owner (borrower) which explains that if the home owner is unable to fix the default on the mortgage in the given time, the lender will sell the house at an auction to try and recover what the home owner owes on the mortgage. Until the home is put up for sale at the auction, it remains in pre foreclosure.

When a home is foreclosed upon, along with the foreclosure also comes a negative credit score for the home owner. This is primarily why many home owners try to sell their homes during foreclosure. Most often than not, by selling the home, a home owner is able to pay to the lender the remainder on the mortgage amount, and can thereby avoid foreclosure.

In instances where the amount that needs to be paid is less, the home owner keeps the remainder of the proceeds from the pre foreclosure sale. In these situations, there is an increased room for negotiation.

There are cases where the amount that the home owner owes is higher that the home’s existent valued market prices. In this scenario, the lender can agree to waive off the amount that remains on the loan after it is sold to the best offer. A lender would do this to avoid the costs that it would have to incur to foreclose on the house, and then in maintaining the house post foreclosure.

A couple of things should be checked before you buy a pre foreclosure house. Firstly, you should inspect the house and look for any possible structural damage. Check if the basic amenities are in working condition. Secondary liens and un-paid taxes should be looked into, as they usually pass on to the new home owner.

Listings of Seattle homes in pre foreclosure can be found on the internet. You can check with real estate agents, as home owners who wish to sell their pre foreclosure homes are known to engage their services. You could also approach county courts for lists of home owners who have been served with foreclosure notices.

Pre foreclosure homes are known to offer some of the best foreclosure deals. With some patience and perseverance, there is no reason why you should not find a good deal.