Foreclosures

What is a Foreclosure?

A foreclosure is defined as the legal process by which an owner’s right to a property is terminated, usually due to default. Typically, a foreclosure will involve a forced sale of the property at a public auction with the proceeds being applied to the mortgage debt.

Timeline of a Foreclosure

What Does a Foreclosure Mean?

• A homeowner will not qualify for an FHA home loan for five years, an investor whose property has gone into foreclosure will not qualify for seven years
• Your future interest rates will be affected
• A credit score can be lowered 250-300 points
• A foreclosure can stay on your credit report for ten years or even longer
• May affect job security or getting a job such as a police officer, military or CIA as credit checks are always done and considered
• Depending on the type of loan, a bank can go after more money after the foreclosure to obtain more of the mortgage deficit, which is called a deficiency judgement
• Once property has been foreclosed, the bank will try to sell it through a Realtor or at an auction. If the sale price is lower than the mortgage that is due, the bank will try to get a higher deficiency judgement from the homeowner

Purchasing a Foreclosure

Nevada real estate foreclosure homes offer huge savings on foreclosure real estate investments. Buying Nevada foreclosed homes means paying way below market price- these homes have a tremendous investment value.

When purchasing a foreclosure there are a lot of variables to consider.  Some of these variables are:

• your employment position-lenders may not approve a loan for someone with no visible income
• your cash flow-this can be crucial, you should make sure you have cash reserves as well
• partner support-emotionally, perhaps financially you will need the support

 

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For more information on foreclosures or to view foreclosed properties, I am here to help, give me a call at 702.428.3969, or email me at nathan.petrosian@gmail.com. Nathan Petrosian is a Las Vegas Based Real Estate Agent, with over 15 years of experience in Real Estate Sales and Mortgage Lending.

 

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