If you want to find a home at a bargain price in Los Angeles, then you should definitely consider foreclosed homes. The foreclosure process is something which more and more home seekers are taking advantage, and it could be just what you need to find your dream home at the right price.
What Is the Foreclosure Process?
A home is put into foreclosure when the person who lives in it falls behind with their mortgage payments. Their lender will give them every chance to get back on track, but after a while, they will feel that the only way to recover some of their money is to take legal action. After the borrower has missed three loan payments, they are classed as being in default, and the lender can issue them with a Notice of Default (NOD), which is filed with the county.
After seven months of missed payments, the borrower can officially start the foreclosure procedure and look for someone to take the property off their hands. By this point, they just want to see some of their money back, so they will most likely put it up for sale at a foreclosure auction and will accept a reduced price for it, if anyone is willing to take it off their hands.
If the property doesn’t sell at the auction, then it will generally go back to the bank to market for sale in a more conventional way. These houses will then appear on real estate agents’ listings. One of the interesting aspects of these properties is that the price will tend to reduce over time, as the lender becomes ever more eager to rid themselves of this troublesome property. There is usually a good deal of interest from potential buyers in these homes, due to the reduced prices.
How to Find the Right One
Finding some foreclosed homes in Los Angeles isn’t going to be a big problem, but how will you make sure that you choose the right one for your needs and budget? Well, the smartest move is to get a local real estate agent to help you out in your search.
There are a few different reasons for putting your trust in a real estate agent when you start looking for a foreclosed deal. First of all, they know the local market. What this means is that they know what the foreclosed homes which you are interested in are really worth. Their expert local knowledge will be invaluable in helping you make sure that you get a genuine bargain instead of a place which ends up looking like a bad purchase and may end up costing you money in repairs and other bills.
Another reason why you should turn to Los Angeles real estate agents is that they understand all of the laws and the processes which are involved in this kind of real estate deal. There is no chance of you making a mistake or ending up with problems if you have got someone who knows exactly what they are doing working on your behalf.
Steven Whittle is a real estate researcher and property investor. His main area of focus is LA and he enjoys sharing his insights on various property blogs. Find out more about Los Angeles homes.
