Santa Monica Homes For Sale|Biggest Tips and Tricks 13
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Santa Monica Homes For Sale - There are many homes which have been repossessed by creditors, usually meaning you can pick up a great deal, but how do you go about obtaining one? Firstly, at present there are many Santa Monica homes for sale which are currently going to auction, so look further into that as an option.
There are many things to consider:
o In virtually all of the states the only way to purchase a home which has gone to foreclosure is through an auction. It's also worth bearing in mind that you are not usually given any access to the property you wish to purchase prior to the auction. You should however endeavour to at least drive past the house. The home may be vacant or it may still have its occupants living inside right up to the time of the auction. A recent example of this was in Venice, where there were several Santa Monica homes for sale due to respossesion proceedings, the problem came from the fact that the previous occupants simply refused to leave their old homes.
o It is also worth bearing in mind that you sometimes cannot simply move in immediately to your new property, the occupants may sometimes need to be evicted. This throws open the chance that the previous occupants of the house may still be residing in the property. To circumvent them from causing damage to the home, you may consider paying them to move out. At the end of the day, it will save you time and money in the long run just to pay around $ 1, 000 to the occupants to avoid any problems arising. This is a tactic that those with Santa Monica homes for sale recently utilized.
o To avoid potential problems when you move in, try to find out if anyone was living in the property during the winter. You may be facing an expensive bill if there is evidence of pipe damage due to the cold weather and the lack of heating inside the building.
o The Sheriff's office will usually have the capacity to provide you with a portfolio of properties which are in the foreclosure process.
o Any time you look at purchasing a house this way, use the services of as REALTOR as they will be able to provide you with further information regarding valuations and expected bid prices. This will enable you to know what sort of price the house will sell for.
o It's also advisable to ensure that you are fully aware of all the liens associated with the house in question. (A lien is referred to as a party which has a valid interest in the house for instance a creditor.) This info is freely available through contacting the Recorder of Deeds. Every lien on every property should be found there.
o Liens are generally seen in this order of priority:
1. Federal Tax
2. State Tax
3. Local Tax
4. 1st. Mortgage recorded.(the primary mortgage arranged)
5. 2nd Mortgage recorded (it's usually a Home Equity loan).
o Usually, once the higher ranking entity forecloses the lower ranking items are cleared unless they are TAX liens. However, this is not always the case. You should verify with your local municipality to ensure. Below are just a few examples for you to look over. These generally use Santa Monica homes for sale for examples.
1. The home has 10K in tax liens, 200K in first mortgage and 50 K in second mortgage. The consequence of the auction is that the house sells for $250,000. Well firstly the tax would be paid, then the primary mortgage and then anyone left over money would be paid to the remaining creditors. You own the home and the title is clear. (This is by no means 100% guaranteed to happen though, it depends on the rules in your state.) In the Venice district the regulations regarding Santa Monica homes for sale are notoriously strict.
2. The second example I want to explore is when a house has $50,000 in tax liens and is foreclosed by the government. The property in this example is also linked to a 2nd mortgage of $250,000. This clears the tax that caused the foreclosure to begin and most, if not all other loans ranked lower than the original tax lien. When this occurs, it's quite common for the bank which provided the credit for the first mortgage to put a bid on the home to try and secure their financial interests.
o The standard procedure if you win the house at auction is to pay around 10% up front. You will then have a set time frame to pay the outstanding balance.
o Now I suggest that you retain a lawyer and perform a thorough title search on the property, buy title insurance and have the deed prepared.
o If you don't find any other liens on the property then go ahead and pay the outstanding balance.
o If the search performed by your attorney does indicate more liens or similar then it may be best to write off the 10% you have paid and walk away, seek advice first though.
o If you are happy with the title search then pay the existing balance and then proceed to record the deed (your attorney will aid in this procedure).
o Now, if the home is vacant, you need to gain access, (you won't get any keys). You own the property though. (In some states the previous owners have a period of time where they can reverse the foreclosure and pay the entire amount owed to the foreclosing entity. Normally, this is 30 to 90 days if it applies at all This is particularly true of Santa Monica homes for sale.) You will of course have access to the house, but the risk is high.
o If you find that the home isn't vacant then you will have to go through an eviction process, or pay around $1000 as advised at the beginning of the article.
I hope the above information has portrayed to you the various risks involved in purchasing a foreclosure. It is a long way from the relaxed and attractive transaction which many people seem to see it as. Here are a few alternatives.
1. It is easy to just go through a real estate agent to purchase a house. In this case banks will commonly lower their lien to avoid the potential risk of a foreclosure. This could have prevented many Santa Monica houses going up for sale.
2. You can sometimes contact banks and buy bank owned property. Banks also commonly used realtors to advertise their properties for sale, so contracting a REALTOR will aid you in this process. Just before I forget though, if anyone is looking for homes in California, check this resource out Santa Monica homes for sale.
Foreclosures homes often allow first time buyers to get into the market. But the flip side to this is the massive risk involved. It is fully necessary that you recognise the risks involved and fully comprehend what you are stepping into.
Make sure that you hire the services of a licensed REALTOR. Your sales proposal / contract, whether prepared by an attorney or REALTOR, will ensure that your property is free and clear of all liens or the closing will not occur. You may have seen on the news the recent cases were those buying Santa Monica homes for sale were recently caught out by not carrying out proper research.
For those of you looking into foreclosures, all the best. For those of you looking to buy a house in much less risky manner, call a REALTOR and let the shopping begin. Real estate agents at present seem to be favouring re-directing people to Santa Monica homes for sale.
(Information contained within should be considered informative only. Each areas laws differ. Just make sure you check up on those laws prior to making any big decisions.) Before I forget, if you are wanting to purchase in California then check out Santa Monica homes for sale.
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Trace Keasler is a licensed broker serving the Santa Monica area since 1989.
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