Foreclosed homes houston
Foreclosure is a dirty word used in real estate industry. When borrowers are not able to repay the installments of their loan mortgage lenders foreclose the property and sell it at prices often lower than the market price in order to recover the dues. During the recent recession in the United States the number of foreclosure of homes in whole of USA have gone up considerably that was 13,636,185 in the year 2008 to date at the average sales price of $161,307 only. Compared to this the number of foreclosed activity in Texas was 619,058 year 08 to date. In October only it was 66,343. The average sales price is $119,079 only.
In Houston TX the number of foreclosure was about 6130 at an average sales price of $161,000. At Cliffdale Street in Houston a 3-bedroom home with 2 baths in more than 15 square feet area under foreclosure can be sold at about $188,000. Another house at Chuckberry Street having 4 beds and two baths in more than 2500 square feet under foreclosure can be sold at just $135,000. Another house under foreclosure in W Village having 2 bed rooms and bathrooms in 1400 square feet area can be sold at as low as $1500.
When a borrower/owner of a house defaults on loan payments that are generally mortgage payments, foreclosure process begins. The lender files a public default notice, in the court. The result of the foreclosure process is that the defaulter of mortgage loan reinstates the loan repayment process so as to clear defaults during the grace period given by the court also known as pre foreclosure period.
The borrower can sell the property to some one else during this pre foreclosure period and pay off the loan to the lender. Failing to do so, any body can buy the property at the end of the pre foreclosure period in an auction. If the borrower can't pay off the dues the lender takes over the property and sells it off in an open market.
These properties are known as bank-owned or real estate Owned by the Lender. The opportunity of buying a property in pre-foreclosure period comes when a new buyers comes forward to the borrower with a proposal to buy it outright though at a heavy discount that may range from 20 to 40%. The borrower can save his equity in the property and don't lose his credit worthiness in the market. Buying properties on foreclosure is a serious process involving precise details about the properties and some legal formalities.
In the pre-foreclosure days less legality are involved. The buyer has to find about the reinstatement of the property. Buyer had to find out the estimated market value of the property in Houston market and how much is the due by the borrower. The owner may have other lien on the property. This information makes difference in quoting the price for purchase. After the complete assessment only the new buyer should move forward to quote the price.