Foreclosed Homes In Little Elm TX: The Basics Of Home Foreclosures

Foreclosed Homes Little Elm TXAre you interested in looking at foreclosed homes in Little Elm TX? You’re not alone.  In the past eight years, millions of homes have been lost to foreclosure, many of them in North Texas.  That means that there are many buyers looking to snap them up.  The reason for that is that most of these foreclosed homes in Little Elm TX are in distressed condition and the lenders are usually eager to resell them as quickly as possible, even at a loss – which means they can be purchased for less money than they’re worth.

If you’re a buyer looking for a home to live in or you want to buy a home to rent to someone else as income property or you want to buy a home to fix and resell, you should learn as much as possible about foreclosures and what the foreclosure process is because even though you’ll probably be working with a knowledgeable realtor, there’s no such thing as too much information.  And although you may not think that the process by which the homeowner has lost his home is important for you, as the potential buyer, to know, remember that you will also likely be taking out a loan for the home and foreclosure could very easily become a reality for you, too.

Foreclosure is the process through which a bank, mortgage company or other lien holder seeks to take a property from a homeowner who has failed to make his mortgage payments.  Once the process is complete the homeowner loses all rights to the property.  The bank or lien holder may either take possession of the home or they may immediately put it up for auction to the highest bidder.  The steps in the foreclosure process are:

1. The Pre-Foreclosure.  The homeowner has been given legal notice that the foreclosure process is about to begin.  In the State of Texas, this means he has been given a ‘20-day notice’ (Notice of Default), which means he has 20 days to make up the defaulted payments before the process proceeds.  During this time, you can approach a homeowner and make a cash offer on the home, which he may consider as this will let him leave the home with some recouped equity and without a big blemish on his credit record.

2. The Foreclosure Auction.  If the homeowner does not make up his payments and the loan is not reinstated, the property can be sold at a foreclosure auction.  If you’re considering purchasing foreclosed homes in Little Elm TX this way, remember that you likely will have no chance to see the home before you buy and you will also likely have to pay cash on the spot if you win.

3. The Bank-Owned Property or Real Estate Owned (REO).  If the home is not sold at auction, the lender takes possession and can sell the property through a real estate agent.  When sold this way, you will be able to see the home before you buy it to see what condition it’s in.  Be aware, though, that buying a home from a bank can be a lengthy and sometimes frustrating process.

Buying a foreclosure is more complicated than buying the normal way; that’s why it’s important to have a realtor by your side who knows about buying foreclosed homes in Little Elm TX.  Iryna Mitchell can help you through the process and she can explain all of the problems you may encounter.  Call Iryna at (214) 646-1198 or visit www.irynamitchell.com to get started with your search.

Foreclosed Homes Little Elm TX
Frisco TX Real Estate Agent | Iryna Mitchell
11955 North Dallas Tollway Ste. 300A
Frisco, Texas 75033
(214) 646-1198

Credit: Deposit Photos/ mj0007

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