Most people know that real estate can help build a families financial abilities. Families have used the equity in their home to start a business, put the children through college, pay off other debts, buy a car or even purchase other real estate.
That knowledge and understanding of what home ownership or real estate ownership can do for you causes many to want to make that investment.
So here we’re going to look at 2 options that have people talking. We’re comparing foreclosures and short sales. We’ll try to answer your questions.
Let’s take it from the beginning. When someone or entity wants to purchase real estate, they find the property then go for a loan (mortgage) to acquire that property from the seller. That property is used as collateral for the loan (mortgage). This mortgage can be made through banks, insurance companies, other entities or individuals.
The lender requires payments on that mortgage, if the borrower doesn’t make their payments the lender is allowed to start the foreclosure process. That’s right the foreclosure is a process that allows the lender to gain possession of the property. Joining our members you’ll find foreclosure property information throughout the United States.
Short Sales –
Up to til the time the title changes hands the home owner still has control over the property. A foreclosure can take up to 2 years to be finalized and the property sent to auction. During that time period the homeowner might want to end the foreclosure process and move on. One possibility is to sell the property.
A short sale is a means of selling the property. The mortgagee(s) (financial institution, individual) and all lien holders would have to agree to the short sale. This would require the mortgagee(s) and lien holders to accept a lower price than is owed on the mortgage to be an acceptable selling price.
This requires a lot of paperwork, forms and documents. Remember the mortgagee, more than likely, would receive a much lower amount than the mortgage loan.
What’s better to buy a foreclosure property or a short sale property?
The foreclosure process can be a long process. There can be many court appearances, the emotional stress of losing your home. The possibility of a marshall (depending on the jurisdiction) coming to your home to move you out. There is a special pain that comes over people who’ve lost their home to foreclosure.
With a short sale it’s something that you can prepare for because once you go into contract it functions just like any other sale. In many cases the mortgagee have given the homeowner (seller) a small amount of money $3,000 to $5,000 at the closing. The homeowner can walk away saying that they sold their house.
How does a short sale or foreclosure effect your credit?
A foreclosure has a serious hit on your credit report. Your score can drop quite dramatically. Remember the foreclosure is similar to the repossession.
The short sale is recorded as a sale. That’s it.
How to find and/or purchase a foreclosure or short sale property?
Foreclosures are available nationwide. According to Attom Data Solutions there were 362,275 US properties with a foreclosure filing in the first six months of 2018. That total is much lower than the peak of the housing collapse in 2010 of more than 1.5 million foreclosures in the first six months of that year. There are still 100’s of thousands of foreclosures out there. You can check with financial institutions if your looking to find a property, or you can just join Foreclosures Auctions that provides links to bank foreclosure information.
Finding short sales is much different. The short sale market was quite active during the years 2006 to 2010 when there were many houses “underwater” (meaning the mortgage was more than what the house was worth). Many people that were in that situation sold their property years ago, just walked away, or managed to go into mediation with the bank to do a loan modification.
Are there secrets to buying a foreclosure property?
No, not really. The thing about buying a foreclosure property is to deal with certain issues first:
- Decide whether you want a property for personal use (home) or investment (rental), or flipping,
- do the research into the areas you might want to own a property in,
- use the internet to figure what’s a good price for the type of property your looking for,
- determine how much you’d want to spend to purchase the property,
- make a visual inspection of the property, you might want to bring a professional,
- determine how much you’d want to put into repairs on the property,
- learn the specific process of purchasing a house from the institution or government that owns the foreclosure
Your due diligence makes a big difference in whether you get a diamond in the ruff, or a dud.
Foreclosures VS Short Sales Summary
Remember finding your properties early is very important in the buying process. No bank or lender wants to hold onto a foreclosed property, there’s no money in that. They want to get rid of the property. Many jurisdictions require the owner to maintain the property, and continue to pay the taxes or other expenses on the property.
ALSO: This is something that you should keep in mind if you’re thinking about finding a short sale property the Home Affordable Refinance Program (HARP) that was created by the Federal Housing Finance Agency to help homeowners that were in properties that were under water (mortgage is more than the property was worth), or to put it another way had little or negative equity, has ended 12/31/2018
We provide sources for you to reach your goals. We’ll add more information and answers to questions on this page, and others, you can come back as often as you like.
With the information we provide to our members you’ll get all the details, rules and deadlines directly from the source.
ForeclosuresAuctions.com – Foreclosures, Auctions, Grants, Tax Liens and more… Thanks You
We thank you for visiting our site…and we hope that you do join us in the real estate investing circle. We’re the source for government foreclosures, bank foreclosures, auctions, grants, real estate investing and tax lien certificates. We’ve compiled some of the best information on or offline.
Look at what we have to offer. We know that you see that it’s a great opportunity for success in the future. You must give up just hoping and wishing for a change. Take your growth and success into your own hands.
We hope that you join us and grow together.
Here’s a North Carolina auction single family home available. This property is up for auction April 3, 2019 – RESCHEDULED
This is a 3-Level brick home with 5 bedrooms, 3.5 baths, kitchen with breakfast area, dining room, living room, family room with fireplace, 2nd floor bonus room and laundry room, screened-in patio, and attached 3-car garage.
- Single family home
- all brick
- 5 bedrooms
- 3.5 baths
- living room
- dining room
- kitchen with breakfast area
- family room with fireplace
- screened-in patio
- 3 car garage
We hope that you enjoyed the photos of this North Carolina auction. They’re taken directly from the government site. They’re used to give you an idea of what the property looked like. If the property is still available when you join us take the opportunity to view the house during it’s open house.
There are more North Carolina auctions throughout the year. North Carolina has real estate foreclosures, auctions, computer, auto and more for sale.
Government sales information
The United States government sells at auction many different types of properties, from real estate auctions to computers to cars and more. What we want to do here at Foreclosures Auctions is find some of them that are upcoming for auction and present them to you.
NOTE: Our property description and property details are taken directly from the government sites. The property might be different when you view it, please note that we can’t be held responsible for the accuracy of anything that the government states.
NOTE: The properties that we list are available at time of posting. If you join our site Foreclosures Auctions before the auction date, you’ll be able to see that property. Remember the government might remove properties or change dates and information without our knowledge. ForeclosuresAuctions.com is not responsible for cancelled sales, and/or property removals.
Please use due diligence when trying to purchase a property at an auction. Do as much research as possible.
We go through the list and pick the properties that our team found most interesting.
The Tax Cuts and Jobs Act passed December 2017. Within the act was the creation of the Qualified Opportunity Zones (QOZ’s). This was created to help encourage economic growth and job creation in distressed communities. through tax incentives, they are designed to spur economic development.
Opportunity Zones are designated covering parts of all 50 states, the District of Columbia and five U.S. territories.
Under certain conditions, they may be eligible for preferential tax treatment. To become a Qualified Opportunity Fund, an eligible corporation or partnership self-certifies by filing Form 8996, Qualified Opportunity Fund, with its federal income tax return.
We’re not going to get into the possible tax benefits in detail here. The links below will be able to help you further if you find QOZ’s interesting. We just want to open your eyes to something new.
Here are 2 links that will give you more detailed information on QOZ’s:
Please speak with your tax and/or legal advisor to see if this is right for you.
Understanding auctions and the process.
What’s an auction?
An auction is the process for selling or buying items or goods, that includes real estate, cars, planes, computers, jewelry and more, to the highest bidder.
What’s an auction house?
There are auction companies and auctioneers that have a building, store or office where they hold the auctions.
How does an auction work?
When a person, a business, entity, or estate wants to dispose of unwanted items they can contact an auctioneer (person that conducts the auction) to sell the item. Many auctioneers will do an appraisal on the item(s) to determine the best price. The auctioneer can receive a commission, flat fee, or on consignment. The auctioneer would usually set a date for the sell, and start marketing the auction.
On the date of the auction the public or invitees will show up at the auction house or site where the property is located, or by phone or online (depending on the rules set forth by the auctioneer). At some auctions those invited to bid will be given paddles with individual identification or marks (sometimes numbers), some auctions will allow hand or facial gestures.
The winner of the auctioned item is the bidder with the highest offer. Some auctions will require a deposit for the item, and give the winner time to pay off the item and take possession of the item. Some auctions will be just cash and carry (you must pay for the item and transport it with you).
This is a general idea of how auctions can work. You must contact the auctioneer or auction house to find out the specific rules for their auction process.
What are the different types of auctions in the United States?
There are many types of auctions in the US. We won’t get into all of them. There are 2 main types of auctions that we will deal with in the United States, the open auction, where people gather and view an item then each person signal their bid to the auctioneer.
The second is the sealed bid auction. This is done through either mailing in or posting your offer for the item. You don’t see the bids that others made on the item. The auctioneer or company holding the auction will check the offers at a certain time, then notify the winning bidder.
What is a reserve price in an auction?
Many items up for auction have a set price that the seller wants to receive. If the bids do not reach that price the item is not sold, the item might be withdrawn then relisted. Sometimes the property might be relisted with a different price or some other incentive.
What’s an absolute auction sale?
An absolute auction is an auction where whatever the highest bid is, the bidder will win the item. With an absolute auction there is no reserve price set. Some absolute auctions will set the opening bid at the price that the seller actually wants for the item. This way any bids above that price just increases the amount the seller was actually looking for, and will receive. The great thing is that you will receive the item whatever the bid is.
Here we set up sections for information that you can view, and if you join our family you’ll be able to view more.
Is an online auction or live auction better?
There are different types of auctions, some online, some at an auction house, some at the location of the property.
We can’t say whether online auctions or live auctions are better. Better depends on your views. There are auctions throughout the United States. There can be items in a state that you might not be able to get to by the time of an auction. In that case many auctions will allow online bidding so that you can bid on an item no matter where you’re located.
The biggest downfall to the online auction is that you might not be able to examine the item. Many auctions will provide photos, and details. You might also to be able to hire someone to inspect the item for you.
Many people like the live auctions. It provides you an opportunity to actually examine the item that you might want to bid on.
Some like the live auctions because it gives them a chance to see who they’re up against.
Again, it’s a personal preference.
What items are sold at auctions?
Auctions can provide a whole range of items. Remember you have real estate auctions (residential, land and commercial properties), boats, planes, auto, art work, jewelry, clothing and much more. Almost anything you can imagine could be up for sale at an auction.
How often are auctions held?
Auctions are held throughout the year. Each state has auctions throughout the year. View our state auction pages you’ll see links to auctions happening on and offline.
Are there auctions in all 50 states?
Yes. Each state has auctions throughout the year. View our state auction pages you’ll see links to auctions happening on and offline.
Can anyone participate in an auction?
To participate at an auction you must contact the auctioneer, auction house or site. Each auction will have it’s own rules about participation.