“Foreclosed home for sale” means that a home is being sold because the previous owner could not make their mortgage payments. In such a sale, the proceeds will usually go to the mortgage company or lending institution in order to make up for the missed payments.
Sometimes the foreclosure sale is being conducted through the intervention of a court. This is known as a “judicial sale”. In other instances, it is the bank itself that is conducting the sale. These are known as foreclosure by “power of sale”.
One of the main reasons that persons might pursue buying a foreclosed home is that they can sometimes go for very reasonable prices. This is because the nature of the foreclosure process often creates pressure for the home to be sold quickly in order to allow the mortgage company to make up for lost payments.
On the other hand, purchasing a foreclosed home is not without its risks. For instance, some homes that are subject to foreclosure sales may be poorly maintained and will need “fixing up.” This may end up increasing the overall cost of the home sale procedure.
You will also want to ensure that any outstanding foreclosure proceedings, or any other mortgage issues are not in effect. All homes titles need to be “marketable,” meaning that there should be no outstanding disputes over the home property. You may need to file a “quiet title” action in court to make sure that the home can be sold.
If you need assistance with a foreclosed home sale, you may need to hire a lawyer for advice and legal representation. A qualified real estate attorney can inform you of your rights and can help you learn whether there are any pitfalls associated with a foreclosed home sale. Also, your lawyer can represent you in court if you need to file a lawsuit or if you need to file a quiet title action in court.