Welcome to Pre Foreclosure Guide
Pre Foreclosure In Los Angeles Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Considerations For A Pre Foreclosure Sale
from:A pre foreclosure sale is most commonly referred to as a "short sale" since the seller is going to have to sell their house or property "short" of the actual market value. Since the seller already knows that they will be getting less out of the house than they put in, maximizing their return on the pre foreclosure sale is key as this decreased the amount they will need to borrow or continue to pay on the balance of the mortgage. In cases where the owner is not able to sell the home prior to the foreclosure, they will lose the house and property and will take a significant hit to their credit score as well as there ability to obtain a home loan, or any other type of loan, well into the future.
Since a foreclosure is so negative, most homeowners that cannot refinance or work with their lender to catch up on defaulted payments and set up an appropriate program of repayment for the future often choose the option of a pre foreclosure sale. As an investor it is critical to consider all option of the pre foreclosure sale as there can be hidden costs, fees and significant upgrades required to the property before it can be resold. Even if a house is purchased for thousands of dollars below market value if it needs thousands of dollars of upgrades it is not a bargain.
Unfortunately many first time investors get caught up in the hype and marketing that many pre foreclosure sale companies and marketing agencies promote. Buying a house in a depressed housing market, even at a bargain price, doesn't make sense if you can't rent it out or sell it for more than you bought it for. In cases where there is a depressed real estate market, buying only makes sense if you have the ability to pay the mortgage yourself or if you intend to live in the house and make the payment. Buying a house assuming that the pre foreclosure sale low price will mean that you can somehow sell it for more in the same market is not realistic, although many agents and marketing companies will not present this information.
If you are considering a pre foreclosure sale property, first start by seriously looking at your financial status. If you can afford to purchase the house without putting yourself at risk, then answer the following questions:
• Could you afford the mortgage payment if the property did not rent or sell?
• How much money would be needed to complete the upgrades to make the house more attractive on the market?
• Does the location warrant the upgrades in your return? Older neighborhoods or neighborhoods in transaction are often poor investments.
• What are the overal comparable sales figures for similar houses in the area?
Knowing the pros and cons of purchasing a pre foreclosure sale property are important for your financial future.
Pre Foreclosure In Los Angeles News
More than 30% of US homeowners with mortgages are underwater - GlobalPost
More than 30% of US homeowners with mortgages are underwater GlobalPost A pre-foreclosure sign in front of a home in Miami on Sept. 16, 2010. (Joe Raedle/Getty Images) Real estate website Zillow reports that the percentage of US homeowners with mortgages who owe more than their homes are worth was 31.4 percent in the first ... |
Number of Foreclosure-Bound Homes Down in L.A. County - Patch.com
Number of Foreclosure-Bound Homes Down in L.A. County Patch.com According to the RealtyTrac website, there are more than 300 foreclosed homes in South Gate, with 128 more facing pre-foreclosure. Lenders sent default notices to 11443 homeowners in Los Angeles County in the first quarter, a decrease from the 2011 ... |
Pre-NATO protests target evictions, foreclosures - ABC7Chicago.com
 ABC7Chicago.com | Pre-NATO protests target evictions, foreclosures ABC7Chicago.com Danny Johnson, 31, is accused of assaulting a Chicago police officer. The Los Angeles resident was arrested when he allegedly punched a police officer. Johnson was ordered held on $10000 bond. Pre - NATO protests target evictions , foreclosures. |
Foreclosure drop seen nationwide - Columbia Daily Tribune
Foreclosure drop seen nationwide Columbia Daily Tribune "More distressed loans are being diverted into short sales rather than becoming completed foreclosures," Moore said in a statement. "Our preliminary first-quarter sales data shows that pre-foreclosure sales — typically short sales — are on pace to ... |
Foreclosures Move Downtown - UPI.com
 Boston.com | Foreclosures Move Downtown UPI.com ... DC (30 percent), Riverside-San Bernardino, Calif., (30 percent), and Los Angeles (28 percent), according to RealtyTrac's April US Foreclosure Market Report. The metro areas with the highest foreclosure rates among the 20 largest were Riverside-San ... RealtyTrac: Have Foreclosure Actions Really Dropped? |