Not every foreclosure is a great bargain, and some can morph into unexpected nightmares. Harbour, city lawyers said, has been selling substandard” homes to buyers in Cincinnati who often default on the contracts because they cannot pay for the repairs or keep up with the monthly payments. Dishonest companies or individuals sometimes target homeowners who are struggling to meet their mortgage commitment or are anxious to sell their homes.
Also, foreclosures are often sold AS IS.” Due to the VA owner-occupancy requirement, all homes financed with the VA guarantee must be in safe living condition. Fair Isaac, the company that created FICO (credit) scores, drops credit scores from 85 points to 160 points after a foreclosure or short sale.
Francesca Serafini , a Calgary realtor, says she has seen the frenzy of multiple bidders on a property in foreclosure. Most residents of foreclosed homes are none too happy about their eviction, and many physically take out their discontent on the house itself.
More foreclosure sales also means potentially more pain for homeowners, who could see the value of their homes erode further as neighboring foreclosures sell. VA loans can be used to purchase foreclosed properties as long as the VA guidelines are met. Search for your next property by address, state, city, county or zip code, or use the main menu, above, to guide your way through the explanation of the Foreclosure process.
Pre-foreclosed homes may come with liens and unpaid taxes, which the new owner will be responsible for paying. The search box above is already filtered to return only foreclosures and pre-foreclosure homes. In Ontario, however, homes in foreclosure are generally sold by power of sale, which means the lender can sell the property outright, without getting permission from the court.