A foreclosed home can be a great purchase, but there are a number of misconceptions about the process. Whether it is the homeowner at risk of having their home foreclosed on by the bank, or the homebuyer or investor is looking to capitalize on a foreclosed home, myths exist.
That’s why we’re here to help! Today we’re going to break down the truth about foreclosures.
You Have Significant Amount of Time
There is a long-standing myth that the foreclosure process takes an exorbitant amount of time, leaving some homeowners to believe they have months, or even years, before the bank will take their home away from them and force them out. This myth is fueled by a number of sensationalized stories in which families have been able to circumvent the foreclosure process by simply doing nothing. Although this does rarely occur, it is an anomaly and not the norm. There was a time that lending scandals and backlogs were holding up foreclosures; however, that is no longer the case. Banks and lenders now move through their foreclosure logs at record pace.
Bankruptcy is an Easy Way to Beat the Foreclosure Process
There are occasions in which filing for bankruptcy may be the best option for a homeowner; however, it is not the best option for everyone. Additionally, bankruptcy has the potential to produce negative consequences that can reverberate for years, even decades. Also, filing for bankruptcy costs, and there are normally statutes in place that require that the individual’s taxes are in order before filing.
Foreclosures Will Require a Substantial Amount of Work
A recent survey revealed that 92% of potential homebuyers were under the impression that if they purchased a foreclosed home, they would have to perform a significant amount of repairs to make the home livable. Yes, there are those times in which a foreclosed home will require a great deal of work; however, the vast majority of them only require minor cosmetic repairs and upgrades.
Foreclosures Sell at Substantial Discounts
People looking to engage the foreclosure market for the first time often believe that they will find bargain basement prices; however, the truth is that there will likely be a discount, but that discount will generally be less than 25% of the properties appraised value.
Having a realistic perspective of the foreclosure process from either end will protect individuals from unwanted surprises that could end up costing them more in the long run.
Are you looking for a terrific Nashville property? Or are you facing foreclosure? If so, let our team of professionals help! Give us a call or drop us a line today.