Still another option is for the borrower to hand over the deed of the property to the lender. The lender then agrees not to proceed with the foreclosure. While the lender does end up owning the property and, therefore, must sell it, this approach typically reduces the time it will take to settle the issue and solve the default and the expenses, relative to foreclosure. When the lender receives the deed or title, such lender becomes responsible for any other matters and questions attached to the title such as second liens, mechanics liens, or unpaid taxes.
In consequence, deeds in lieu of foreclosure are apt to include borrowers in better financial conditions or borrowers who are more concerned with the stigma of foreclosure and credit deficiencies. Foreclosure laws simply affect the cost of foreclosing and the time it takes for the foreclosure process to be completed, but the impact on the selling price of the home are less obvious.
However, in locations where the borrower has the right to buy back the home even after foreclosure and sale of the property to a new homeowner, one would expect the selling price of the property to go down, because the new owner cannot immediately obtain clear title on the property. Another area where foreclosure is relevant in the real estate industry is the area of free foreclosure. Newcomers to the real estate profession and experienced professionals alike utilize free foreclosure listings. These listings are freely available on the World Wide Web with the click of a mouse.
A good service can literally deliver tens or even hundreds of listings to you in a matter of seconds. Think of the time and energy this can save you. In the past, buyers had to take hours out of their schedules to locate the same amount of listings. Then there was the problem of relevance. One of the strengths of the Internet, besides its speed and spread, is the ease with which it can be continually updated. This couldn't be said for the old databases of the past. Today, however, you can literally receive accurate, up-to-date free foreclosure listings from the comfort of your own home.
These databases contain listings for every state in the U. S. and are updated daily Free foreclosure listings can help you save even more money on purchasing the great real estate bargain: foreclosed properties. These properties are typically sold at prices that make buyers happy, as the average foreclosure price is ten to fifty percent below market value. For this reason, foreclosures are some of the hottest types of properties for investors looking to make a relatively quick profit.
By snapping up a foreclosed property, an investor can turn around and resell it at a much more competitive price--and enjoy a nice profit margin. Looking at it from an owner's perspective, when you buy a foreclosed home, you're buying a property with built-in equity. In other words, whatever your interests may be as owner or investor, there's no way to lose on foreclosures. Why are foreclosures such bargains in the first place? The reason is because the bank or lending institution desires to get the property off its hands rather than waste valuable time (and money) having it sit there.
There is great incentive for lending institutions to get rid of these properties. Their loss can be your gain. Some features of free foreclosure listings include When looking at foreclosure properties, you need all the information you can get right off the bat. This saves you time by helping you hone your focus. For this purpose, the best free foreclosure listings include photo galleries of each property, along with essential tax roll information. Having this important information instantly available to you makes it that much easier to get rolling on the process.
Free foreclosure listings contain all three kinds of foreclosure properties: REOs, regular foreclosures, and properties from Fannie Mae and government lenders like HUD or the VA. No matter what your particular needs, you can find everything in one place when you subscribe to a free foreclosure listing service. One of the more common questions regarding free foreclosure listings is, "Can we trust the information in their databases? " The answer, obviously, is that it depends on the particular service. It's common knowledge that the Internet is full of both reliable and unreliable information.
However, an established and reputable listings service will provide you with accurate information you can depend on--straight from the very agencies or lenders offering the foreclosures. Moreover, the requirement of a judicial foreclosure process may reduce the resale price of the property because it is vacant or rented for a longer period of time, which should increase the opportunity cost of holding the property under the lender’s ownership. Nonetheless, this effect is perhaps negligible compared to the effects of the right of redemption, because the new owner of the property at least has a clean title.
Likewise, deficiency judgment provides more power to the lender and therefore may result in a swifter resolution of the foreclosure process, providing less time for the property to deteriorate. Again, this effect should be a lot less significant than the right of redemption in terms of house prices and the recovery from sale. When the monopolized market supplies an input used by a downstream industry, the motivation for foreclosure cannot be the desire to extend market power, since there is a single final product and thus a single monopoly profit.
Foreclosure can however serve to protect rather than extend monopoly power. Rey, P. and Tirole, J. (2006). A case in point is Nokia’s creation of Nokia Mobile Software, an independent division separated from the rest of Nokia by a “Chinese Wall”. This division writes the Nokia Series 60 middleware platform (running on top of the Symbian operating system) that is used not only by Nokia’s phone division, but also by a number of its rival mobile makers. See Evanset al. (2005) for more detail.
Real estate sales agents, homeowner's insurance agents, and mortgage officers should spend more time on trying to help their clients and customers to face issues concerning the ability and limitations of their clients to find suitable insurance policies and purchase good homes. Therefore, foreclosure is a highly relevant procedure in the real estate industry.
References. Rey, P. and Tirole, J. (2006). A Primer on Foreclosure. from http://agentcampus.blogspot.com/search/label/mortgage