Idaho Foreclosures >> What buyers need to know
I receive a lot of questions regarding Idaho FForeclosures and with home inventories at all-time highs the media is talking a lot about foreclosures and many email me or call me and want to know what they can do to buy a foreclosure.
There is a lot of free advice when it comes to purchasing foreclosures and some of it has merit but many don’t give you the true picture. Here is the real procedure that leads to Idaho FForeclosures and what your options are:
There is a lot of free advice when it comes to purchasing foreclosures and some of it has merit but many don’t give you the true picture. Here is the real procedure that leads to Idaho Foreclosures and what your options are:
The borrower is notified of default and the lender sends a “Notice of Default”
The borrower is mailed a “Notice of Trustees Sale” which means the property has now been scheduled to be sold at public auction at a certain future date.
Any time prior to the “Trustees Sale” a borrower can redeem the property by paying all interest, principal and penalties.
If the borrower cannot redeem the property the “Trustees Sale” takes place and the public auction takes place.
Whoever wins the bid for the real property must present a “Cashiers Check” to purchase the property and received “Trustees Deed” for the property.
So at what point can you purchase Idaho foreclosures? You can purchase a property that is in default and prior to going to “Trustees Sale”. In this case the borrower that is in default must cooperate with you to negotiate a sale to you and the lender that is owed money on the property must cooperate. If you purchase a property directly from a borrower that is in “Default” you must have cash to clear off the mortgage company and payoff any principal, interest and penalties due.
Your other option is to attend the “Trustees Sale” as many have the right to do and bid on the property. If you are the winning bid you are given a “Trustees Deed” which is different from “Warranty Deeds” which is the type of deed you receive when you purchase a property from a seller that is not in default.
What a “Trustees Deed” gives you is simply the title to the property without any warranties or guarantees. It is very possible to get a great deal on a property and inherent thousands of dollars in back property and irrigation taxes and in some cases other hidden expenses you don’t expect. When a property sells at “Trustee Sale” you cannot inspect the interior of the property. Therefore you have no idea what condition the property is in and what kind of repair costs you will inheret.
There are sites like www.realtytrac.com which list what they call “Foreclosed Properties”. Many of the properties advertised on these sites have just been given a “Notice of Default” and some have already been given notice of “Trustees Sale”. What these sites encourage you to do is contact the borrowers that are between the status of “Notice of Default” and the “Trustees Sale” date.
Again, whether you purchase directly from the borrower that has received a “Notice of Default” or your purchase at a “Trustees Sale” there are things you must know about protecting yourself in terms of title insurance and other types of precautions you must take.
The media and many sites would make you believe that buying Idaho foreclosures is a “walk in the park”. This is far from the truth but armed with valuable information you can make a smart sensible purchase.
I have dealt with Idaho foreclosures since 1980 with local and out of state investors. I have worked with and assisted them with the purchase and resale of Idaho foreclosures. It is important that you consult with me or any other person you decide to work with that has the experience before you make the decisions to purchase an Idaho foreclosure.
Good luck to you.