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FAQ

How do I start using BankForeclosed.com?

You can begin by simply searching our foreclosure database. No subscription is required, our service is absolutely free & you will be able to see all the property information available. This includes property type, street address, beds & baths, property size, and photos when available. As well as contact information for the seller including name and phone number, and all foreclosure information and other useful and pertinent data.

What information do you provide for each property?

Once you subscribe to BankForeclosed.com you will have access to complete property information that includes property type, street address, property size, number of bedrooms and baths and when available a photo. Contact information for the seller including name and phone number is also included as well as foreclosure information and other useful and pertinent data.

How can I benefit by buying a foreclosed property?

Most foreclosed properties are sold at a value lower than their market value since the lenders want to cover their losses. There is a possibility that you can get a property at a discount up to 50%.

What is a foreclosure?

A foreclosure occurs when payments have not been made on a mortgaged property. The lender can legally redeem or take the property away from the owner. Usually lenders start the foreclosure process after three months of defaulted mortgage payments.

What is the difference between judicial and non-judicial foreclosure?

Depending on what state you live in will determine if you go to court or not during the foreclosure process. In a judicial foreclosure you will be served with a notice of default by a court official and therefore are required to show up in court. A judge will determine the validity of the lenders claim and will decide if the property will go to auction or not. On the other hand, if you bought your home with a deed of trust your foreclosure will be non-judicial. Here, the conditions of the foreclosure were outlined in the loan paperwork and do not require court approval.

What is a short sale?

A short sale is the sale of property for an amount less than what is due on the balance of the note. As part of this arrangement, the lender typically agrees to forgive the rest of the loan. As a result, the seller doesn't have to go through a foreclosure.

What are the different types of foreclosures?

Pre-foreclosures, Auction and REO ( real estate owned by the bank).

What is a Pre-Foreclosure?

When a property is in pre-foreclosure it means the owner has already defaulted on their mortgage payments but actual foreclosure hasn't happened yet. This property is not yet on the market for sale, and so no asking price is listed. When a property enters pre-foreclosure, the owner usually has at least 2-3 months to reinstate the property by paying off the amount in default.

Who do you contact if you are interested in buying a home in Pre-Foreclosure?

When a home is in Pre-foreclosure it is best to contact the owner and try to work out a deal with them.

What is the advantage of buying a Pre-Foreclosure?

Home owners will try to avoid foreclosures at all costs so they are likely willing to negotiate with a buyer to try and avoid foreclosure. Therefore, buyers can find properties that are up to 50% cheaper than their true market values when they are in the pre-foreclosure phase.

What is Foreclosure Auction?

When a property is in auction it means it did not sell at pre-foreclosure and the home owner has defaulted on their mortgage. The person who bids the highest gets the foreclosed property. If you are going to buy a foreclosure property at auction it is important you do research in advance and you know how much the property is worth, how much is still owed on the property and if there are any liens against the property.

Who do contact if you are interested in buying a home at auction?

If you are looking to purchase a home that is listed as a foreclosure auction you can contact the trustee and try to work out a deal before the auction. Otherwise, you will need to attend the auction and bid on the property.

What is an REO Property?

A foreclosure REO is real estate owned by the bank. Properties in the REO stage didnot sell at auction and the lender is now the owner of the property.

Who do I contact if I am interested in buying an REO property?

If you are interested in an REO property you will need to contact the bank who now owns the property.

What is a Sheriff's Sale?

A sheriff's sale is an auction used to liquidate property for which a mortgage borrower has defaulted. It is listed for an auction in a sheriff's sale because of a court mandated foreclosure. It allows banks and other financial institutions to recover money lost when a mortgage borrower defaults on a loan. In some places, an auction for foreclosed properties is not called a sheriff's sale. Some jurisdictions simply refer to these auctions as foreclosure sales.

What is a HUD (The United States Department of Housing and Urban Development) Home?

A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

How can you buy a HUD Home?

To buy a HUD home you need to use a registered real estate broker. The broker will submit a bid during the designated big period using HUD's web-based, electronic bidding system. If you are the winning bidder, the M&M Contractor, acting on behalf of HUD, will notify your agent who will then notify you. The agent must then submit your signed sales within 48 hours, reflecting the offer that was made electronically and that became the winning bid.

What is a Strategic Default?

A Strategic Default is when a borrower decides to stop paying their mortgage even though they may still be able to afford the payment. When a homeowner strategically defaults on their home, they are following the mortgage contract that states that in the event of default or non-payment of a mortgage loan, the home shall serve as collateral and the lender has the right to sell the property to get back the borrowed money.

What is a tax lien foreclosure?

A tax lien foreclosure is a property that has been repossessed and put up for sale due to a tax debt owed to the government by the previous owner.

Can bankruptcy stop a foreclosure?

A bankruptcy cannot stop a foreclosure but it can delay it. When you file bankruptcy, the court automatically issues an "automatic stay." This tells your creditors to stop all collection activities and foreclosures immediately. If your home is scheduled for a foreclosure sale, the sale will be postponed while the bankruptcy is pending -- typically for three to four months.

What is a VA property?

The U.S. Department of Veterans Affairs (VA) is a federal agency that guarantees mortgages to homeowners who have served in the military. VA acquires properties from lenders that foreclose on VA-guaranteed mortgages and offers them for sale to the public.