Debt Consolidation Credit Counseling In Phoenix

Foreclosure has, unfortunately, become a sad reality of life for many individuals and families who own homes. This is especially true in certain parts of the United States. Any person who might be interested of purchasing a home at an exceptionally low price as a result of a foreclosure can get helpful information from court filings and newspaper advertisements.

Lenders who make the decision to foreclose on homes are required to file a claim with a local court in most states. This court claim provides reasons as to why the lender needed to foreclose such as evidence of allowing the loan to go to default.

Following the judge's official review of the foreclosure information, they will make a judgment regarding the claim. The individual being foreclosed on is then given a certain amount of time, often thirty days, by which they must pay back their entire loan. The home can be auctioned by the court after the designated period of time is up.

There are still some options available to the homeowner even when the court has agreed to foreclose. They can pay back the money before the house is auctioned. Since all court proceedings regarding home foreclosure is made available to the public, an individual interested in purchasing a home could find information about the homeowner and contact them to buy their house before it ever goes up for auction.

Don't Make Offers Until You Have the Facts

While the foreclosure information provided to the court is likely to be accurate, potential buyers should look at several issues that may affect the purchase of the property, especially if it is being purchased as an investment. If the home loan is relatively new and has not time to build up a lot of equity, the amount needed to purchase the home may be higher than the home's value, once associated costs are calculated into the price.

Using the foreclosure information in newspapers may help a potential investor get in touch with the owner and negotiating with them may be more beneficial than trying to deal with the lender.

The lender knows that through auction as well as subsequent civil action they can recoup the cost of the loan and legal costs incurred trying to collect. It would be rare for a lender to accept a lower amount for a mortgage, but then again, there is no harm in trying.