How To Fine Santa Monica Foreclosures Online And How To Buy Them
Santa Monica Foreclosures and Ways to Search for Them Tip 441
I am sure everyone has read the news reports regarding the sheer volume of homes going to foreclosure, but how do you go about getting one? Well first off there are lots of Santa Monica foreclosures which are currently going to auction, so look further into that as an option.
Well, you will firstly need to take into account the factors listed below:
o Usually the way to buy a home which has gone through the above foreclosure procedure is to purchase at aution. It's also worth bearing in mind that you are not usually given any access to the property you wish to purchase prior to the auction. You will of course be provided with the address and should drive around the area and past the house to be sure you know what you are potentially purchasing. Sometimes when you drive by you will see that the house is vacant or occupied. A recent example which you may have seen in the news was in California, where there were multiple Santa Monica foreclosures due to respossesion proceedings, the problem came from the fact that the previous occupants simply refused to leave their old homes.
o Winning the auction also does not mean that you are guaranteed to be able to move into your new home immediately, you will usually have to agree to eviction laws prior to this. This throws open the possibility that the previous occupants of the house may still be residing in the property. You might like to consider paying the occupants a fee to move as opposed to being dragged into what can sometimes be a lengthy legal process. At the end of the day, it will save you time and money in the long run just to pay around one thousand dollars to the occupants to avoid any problems arising. This tactic was one which those people who had Santa Monica foreclosures recently utilized.
o It's also sensible to find out whether the house was occupied during the winter months. If the property was vacant, you may have frozen pipe damage.
o You can usually get a listing of all the foreclosures that are going to be auctioned off at the Sheriff's office.
o In order to ensure a smooth transaction and that you pay a fair price, get hold of your local REALTOR for advice. This is invaluable as it will enable you to know exactly how much the price is worth at market price and how much it should sell for at auction.
o You must ensure that you know the liens against the property. (A lien is anyone who has a financial involvement in the property for example a bank.) This information is freely available through contacting the Recorder of Deeds. All liens on any property should be found recorded there.
o Liens are commonly seen in this order of priority:
1. Federal Tax
2. State Tax
3. Local Tax
4. 1st. Mortgage recorded.(normally, this is the primary mortgage)
5. 2nd Mortgage recorded (it's usually a Home Equity loan).
o Usually, once the higher ranking entity forecloses the lower ranking items are cleared unless they are TAX liens. However, this may not necessarily be the case and therefore it is worth doing your research. Below are just a few examples for you to look over. The below statements use Santa Monica foreclosures for examples.
1. One scenario might be that the property has $200,000 in the first mortgage, $10,000 in tax liens and $50,000 in a second mortgage. The consequence of the auction is that the house sells for $250,000. Well firstly the tax would be paid, then the primary mortgage and then anyone left over money would be paid to the remaining creditors. You will then own the home fully and the title on the property would be wiped clean. (This really is never guaranteed though, it all depends on the regulations in force in your area.) In the Santa Monica district the regulations regarding Santa Monica foreclosures are particularly strict.
2. The second example I want to explore is when a house has $50,000 in tax liens and is foreclosed by the government. The property has $250,000 in other mortgages on the property. You win the auction at $38,000. This clears the tax lien that foreclosed and usually all subordinate leans. When this occurs the primary mortgage creditor will bid on the house to protect their financial interests in the property.
o Once you win the auction, you typically have to immediately pay 10% by using a cashiers check. The balance is due within 30 days.
o Now I suggest that you retain a legal professional and perform a thorough title search on the home, buy title insurance and have the deed prepared.
o So long as the title search doesn't throw up anything unexpected then go ahead and complete the purchase.
o If the title search indicated that you GOOFED, then you must decide if it is in your best interest to finish the deal or loose your 10% deposit.
o Pay the 90% and record the deed (your attorney can help with this).
o You will obviously want to gain immediate access in most cases, (you will not usually receive any keys though). You do obviously still own the home though. (In some states the previous owners have a period of time where they can reverse the foreclosure and pay the entire amount owed to the foreclosing entity. Normally, this is 30 to 90 days if it applies at all This is particularly true of Santa Monica foreclosures.) You will of course have access to the house, but the risk is high.
o If the house is not vacant, you have to work with the local sheriff to evict the current tenants. Note my suggestion above.
I hope the above information has portrayed to you the various risks involved in purchasing a foreclosure. It is a long way from the relaxed and attractive transaction which many people seem to see it as. There are various other alternatives though to getting a foreclosure property.
1. Firstly you can just purchase a house through the standard set procedure. In this case banks will commonly lower their lien to avoid the risk of a foreclosure. This process could have prevented Santa Monica houses going up for sale.
2. Another little known way of purchasing a house is to actually contact banks and creditors and make an effort to purchase homes off them. Banks also commonly used realtors to advertise their properties available for sale, so contracting a REALTOR will aid you in this process. Just before I forget though, if anyone is looking for homes in California, check this resource out Santa Monica foreclosures.
Foreclosure properties can be incredibly smart purchases. But the other side to this is the massive risk involved. You have to make yourself fully aware of the regulations and rules connected with purchasing a property like this.
Make sure that you hire the services of a licensed REALTOR. Your contract, which your lawyer should prepare must ensure that the property is clear of all liens or closing will not occur. You've probably seen the news articles about how those purchasing Santa Monica foreclosures were recently caught out by not carrying out proper research.
Good luck if you are going to pursue this route of buying a new home. For people who don't want all that risk, then my advice would be to contact a REALTOR and start looking around. Real estates agents have responded recently in a positive manner to the masses of people wanting to move to Santa Monica by locating them Santa Monica foreclosures.
(All the info contained within this article is solely provided for your information. Every state and area will have different procedures. You must validate your regional laws/ordinances as they will supercede any information contained here within.) If you are searching at homes in Cali, then you may want to check out Santa Monica foreclosures.
by: TerryKensler Buy Euflexxa from Online Stores and Say Goodbye to Knee Pain How You Can Get 100% Accurate Forex Trade Signals Easily! Find the Best London hotels deals online How Effective Twitter And Facebook For Online Promotions? Why You Need a Forex Trade Signal? How You Can Use Forex Trade Signals Find the Ways and Clarification to Become a Flourishing Stock Trader Earning An Online Graduate Program Or Doctoral Degree Adsense Miracle; Developing Good Content How To Make Money Online – 3 Step System Want to quit smoking - take the help of qualified online doctors BrandRevitalize: Online Reputation Management at Its Best Online Poker Sites For Real Money - Build Your Online Poker Bankroll With No Deposit