Utah Houses For Sale
Buying real estate…any real estate…can be overwhelming and stressful, especially when it comes to Utah houses for sale that are foreclosure properties. If you’re a first-time home buyer it’s probably best that you stay away from this area of real estate.
But if you’ve already purchased a home were two, or if you’re a seasoned investor but you’ve never purchased a foreclosure, then read on because you’ll find some very helpful information here.
First Things First
The first step in buying any property is to familiarize yourself with the areas in which you hope to buy. Don’t just drive up and down streets, get out of your car and walk around. If you’re nervous about walking around a particular neighborhood, then you probably shouldn’t be buying a property there anyway.
If you plan to live in the foreclosure property you buy, then you want to ensure that you are familiar with the neighborhood. Many people flock to Utah because they fallen in love with the mountains and are delighted with the many outdoor recreational activities the state has to offer. Then after a few years their house is one of the many Utah homes for sale because they didn’t take the time to check out the neighborhood to see if it was right for them.
What Is a Foreclosure Property?
A foreclosure property is one that has been taken over by a lender in an effort to recover money owed because the homeowner defaulted on the loan. When the homeowner defaults, the lender files a “Notice of Default” or “Lis Pendens.” Once that happens, the legal process that leads to the homeowner losing the property has begun. When the wheels of justice start turning, the foreclosure process for Utah homes for sale has only for outcomes:
- The borrower can reinstate the loan by bringing the payments up to date and paying any interest, penalties, and legal fees that may be due.
- The borrower can sell the home to another party before the pre-foreclosure period expires.
- The property is purchased at public auction by a third-party.
- The title is passed to the lender who becomes the new owner who then resells it on the open real estate market.
Most foreclosure buyers take ownership of the property during the pre-foreclosure process rather than deal with the lending institution. The reason is because owners who are trapped in foreclosure are far more flexible with price and terms than a bank ever will be. Therefore, working directly with the owner provides the best opportunity to make a profit.