MARYLAND FORECLOSURE

The old adage in wealth building is to buy low and sell high. Investors seeking to leverage their investments into greater wealth have a great opportunity during this time, due to the large number of foreclosure sales being conducted across America. Investors need do the research to determine if the property is right for them. A recent bankrate.com article suggested that for each foreclosure purchased, the investor should commit at least 10-50 hours to research. ApartmentStores Moving and Relocation can assist investors in completing the research by the use of the resources available.

Foreclosure sales of real estate, both commercial and residential, are the result of the borrower’s inability to repay the scheduled payments in a timely manner. Several legal steps must be followed by the lender before any sell can occur. Once these steps have been completed a foreclosure sale is available to the lender.

Sales of real estate lost in foreclosure can happen in several ways and variances can occur in each of the types of sales. Foreclosure sales usually begin at the auction block when the trustee of the lender offers the property for sale. This can occur on the steps of the courthouse, at the property, or another location listed in the notice of sale. There are 3 types of foreclosure auctions. Buyinghomes.org lists them as: “Absolute foreclosure auction: Foreclosure property is sold to the highest bidder, regardless of the price. More auctioneers favor this method as it attracts more bidders. Minimum bid foreclosure auction: Only bids above the minimum are accepted. This reduces the risk for seller guaranteeing a certain price. Reserve foreclosure auction: Seller reserves the option of accepting the highest bid within a certain time period.” Investors need to be aware of the type of auction being conducted and be prepared to offer at least 10% down and full payment within 30 days. However, many sales require a cash payment of the bidding price, so be sure to read the notice of sale closely.

Investors uncomfortable with the auction can purchase foreclosure sales from the lender. Most banks holding REO’s are interested in selling the properties and will view any reasonable offer. While the investor may not receive as large a discount by buying an REO, there are other advantages, which include: all taxes being paid, no hidden liens, the ability to inspect the property, and no tenants to evict. These issues may be worth the trade off of paying a little more for the property.

Foreclosure sales can be located in the local paper in the classified section. In listings provided by HUD and others, and notice of sale postings in the county courthouse. As an investor it is your responsibility to know state laws governing foreclosure sales and again research is required. ApartmentStores Moving and Relocation has collected resources to make the research faster and easier and help the investor to make the correct decision for his investment needs.