What You Need to Know About Virginia Beach Real Estate Foreclosures
Posted by Dennis Blackmore in Foreclosures, Main category, Real Estate, tags: Foreclosures, Virginia BeachForeclosure real estate in Virginia Beach can be a terrific investment, or give home buyers a much more affordable option than traditional properties in this time of escalating prices.
But, before you jump in assuming this is “real-estate for dummies” or the next get-rich-quick scheme, think again! You really need to know your stuff regarding real estate when it comes to navigating your way through the process and making sure you’re getting the most home or condo for your buck.
Also, keep in mind that Virginia Beach homes and condos in the foreclosure process may need some
renovation or cosmetic work. It is generally save to assume that if the home or condo mortgage payment cannot be made that normal real estate maintenance is most likely not being completed.
Virginia reported 3,955 foreclosure filings in December, a 53 percent increase from the previous
month, and a 972 percent increase from December 2006, according to the latest RealtyTrac®
U.S. Foreclosure Market Report.
During that same time Virginia Beach had 193 homes in some sort of pre or foreclosure process.
Consult your REALTOR® for the latest up to date Virginia Beach homes or condos in pre or foreclosure and to successfully navigate through these sometimes confusing waters.
Below are some important terms you need to understand when considering a Virginia or
Virginia Beach real estate foreclosure:
Foreclosure as defined by Wikipedia is the equitable proceeding in which a bank or other secured
creditor sells or repossesses a parcel of real property (immovable property) due to the owner’s failure
to comply with an agreement between the lender and borrower called a “mortgage”
or “deed of trust.” Commonly, the violation of the mortgage is a default in payment of a promissory
note, secured by a lien on the property. When the process is complete, it is typically said that “the lender has foreclosed its mortgage or lien.”
Notice of Default (NOD): The initial document (non-judicial)
filed by a trustee that starts the home or condo foreclosure process, usually after the occurrence of a default under the deed of trust, or mortgage. Both LIS and NOD are part of the real estate PRE-foreclosure process.
Lis Penden (LIS):
Notification of pending lawsuit. The initial document (judicial) filed by an attorney or
trustee that starts the real estate foreclosure process after the occurrence of default under the deed of trust or mortgage. Both LIS and NOD are part of the home or condo PRE-foreclosure process.
Notice of Trustee’s Sale (NTS): A filing by notice announcing a public auction of the real
estate.
Notice (Judgment) of Foreclosure Sale (NFS): An order signed by a judge,
directing a “Notice of Sale” be published and that a referee (trustee) sell the
real estate at public auction. After a property owner misses several home mortgage
payments, the owner has a pre-foreclosure grace period of a few weeks to a few
months – depending on the state – to bring the payments up to date and stop
any foreclosure proceedings. If the owner does not bring the delinquent
payments up to date during the pre-foreclosure period, the property will be
sold at a public auction.
Real Estate Owned (REO): “Real Estate Owned” by the lender; the final step in
foreclosure process. This document conveys property ownership back to lender. The lender/bank has
taken ownership of the property, either through an agreement with the owner
during pre-foreclosure or at the public auction. The lender usually sells the home
or condo to recover the unpaid loan amount. The lender typically clears the
title for any buyer, but the potential bargain is often less than a
pre-foreclosure or auction property.
Government-Owned (GOV): A foreclosed home or condo offered for sale by the
government. When a property purchased with a federally insured mortgage (i.e., FHA, VA)
is foreclosed by the lender, the federal government pays the lender what is
owed, takes possession of the property, and offers the property for sale.
Sort it all out.
Are foreclosed homes and condos in Virginia Beach for you?
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