What is a foreclosure?
A foreclosure is a legal process in which a bank or other secured creditor sells or repossesses a piece of real property because the owner has failed to make payments on their mortgage. There are four ways the foreclosure process can end:

  • The borrower makes an arrangement with the lender to pay off the default amount to reinstate the loan.
  • The borrower sells the property during the pre-foreclosure period. If the borrower sells the property during this stage they will avoid having a defaulted loan on their credit history.
  • Once the lender is awarded final judgment by the courts the lender will sell the property at public auction.
  • If the property is not sold at auction or the bank purchases the property at auction the lender gains possession of the property.

How do lenders foreclose on properties?
Every State has different laws regarding the foreclosure process. Learn more about foreclosure laws in your state by going to the State Foreclosure Laws in Bargain Network Homes Learn section. Although every State does have their own foreclosure procedures, there are two steps in the foreclosure process that lenders use to foreclose on properties that are used throughout the nation:

  • The lender must record a notice of default with the courts or file a lawsuit against the property owner.
  • Once the notice of default is filed the property owner is given a reinstatement period. It is during this period that the buyer has the opportunity to refinance their loan or sell their property.

What are the stages of foreclosure?
1. Pre-foreclosure - this is the period of time when the first legal proceedings takes place by the lending institution against the property owner. It is during this period of time that the property owner has a chance to settle their mortgage debt. The property owner can sell the property during this period. If the property is sold during this stage the owner can avoid having a defaulted loan on their credit history. 2. Foreclosure Auction - If the debt is not settled and the lender is awarded final judgment by the courts the lender will sell the property at public auction. 3. Real Estate Owned Property (REO) - If the property is not sold at auction the lender regains possession of the property

Who can buy a foreclosure?
Anyone! If you have the cash or can qualify for a mortgage, you can buy a Lender-owned property.

Can I buy a foreclosure as an Investment?
Yes. Foreclosure properties listed on bargain.com are available to all buyers, including investors.

How can I find out which foreclosure properties are for sale?
Right here! Foreclosure properties are available on Bargain Network and can be viewed at www.bargain.com/homes.

How do I get more information about the foreclosure properties that are for sale?
Most of the foreclosure properties listed on Bargain Network provide the name and phone number of the listing agent. If you are a potential buyer, please contact the appropriate listing agent directly. Sometimes, the contact information for the listing agent is not available. If you need help finding a realtor, please try our Find a Realtor® service.

How do I buy foreclosed property?
Start right here. Bargain Network is your one stop resource for all the information that you need to buy foreclosures. At bargain.com you will find:

  • A nationwide database of foreclosure listings
  • Information on the foreclosure process
  • Property reports to help you research the foreclosure that interests you.
  • Finance information
  • State Foreclosure Laws
  • Investment information

Do I need a real estate agent to buy a foreclosure property?
A real estate agent is needed to purchase government owned foreclosure property, but you don't need one to purchase REO properties or foreclosure auction properties. Bargain Network does recommend that you find a real estate agent to help ease you through the buying process. To find an agent, please contact the agent listed on the foreclosed property, or contact your local real estate broker. If you need help finding a realtor, please try our Find a Realtor® service.

What is a foreclosure auction?
Generally the foreclosure auction comes at the end of the foreclosure process when the homeowner can no longer repair their financial problems with the lender. As with any auction the person with the highest bid gets the foreclosed property. Remember if you are going to be buying a home at a foreclosure property auction you will be bidding against other investors and potential homebuyers. Do your homework in advance and know how much the property is worth, how much is still owed on the property and if there are any liens against the property.

How do I find foreclosure auctions?
Right here! Foreclosure auction properties can be found on Bargain Network and can be viewed at www.bargain.com/homes.

What should I do before attending a foreclosure auction?
Familiarize yourself with the auction process" Go to the courthouse to observe the auction process before bidding on a foreclosed property.

  • Know where the auction is taking place
  • Research your State Foreclosure Laws
  • Phone ahead and ask about any requirements needed for buying at the foreclosure auction
  • Research the property
  • Determine your bid amount

Will I be able to inspect the property before the auction? In most cases you will not be able to inspect the property before the auction. Make sure you research the property that you intend to buy. Auction purchases are "as is" with no warranties given, no title insurance provided, and in most cases are cash-only, you need to know as much about the property you are bidding on before the auction takes place. A great way to research the foreclosure auction property you are interested in is by ordering a property report through Bargain Network.

How is the opening bid at a foreclosure auction determined?
The opening bid at a foreclosure auction is based on the total amount owed to the foreclosing lender, interest incurred, late charges, penalties any liens placed on the property by other institutions, and may include fees incurred because of the foreclosure proceedings. If no one at the auction places a bed above the opening bid amount the foreclosing lender gains possession of the property.

What are the bidding procedures?
Bidding procedures vary from State to State make sure you become familiar with the bidding procedures in your area before you start bidding at a foreclosure auction.

How much money do I need to bring to the foreclosure auction?
Some States require foreclosure auction bidders to bring the full amount they want to bid in the form of cash or a cashier's check to the auction. In other States, bidders are required to bring a percentage of the bid amount to the auction and pay the rest of the amount within 30 to 90 days. Because foreclosure procedures vary from State to State be sure to familiarize yourself with the foreclosure process in your State by reading Bargain Network's foreclosure Laws.

What is an REO?
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. The bank now owns the foreclosure and the mortgage no longer exists.

How do banks sell REO's?
Each bank or lender conducts its business in a different manner. The bank or lenders goal is to get the best price possible for the property they are selling. Most banks have separate departments that manage their REO inventory.

How do I find REO properties?
You can find REO properties right here at www.bargain.com/homes.

How can I purchase REO properties
Most of the REO properties listed on Bargain Network provide the name and phone number of the listing agent. If you are a potential buyer, please contact the appropriate listing agent directly. Sometimes, the contact information for the listing agent is not available. If you need help finding a realtor, please try our Find a Realtor® service.

Do I need a real estate agent?
Bargain Network does recommend that you find a real estate agent to help ease you through the buying process. To find an agent, please contact the agent listed on the foreclosed property, or contact your local real estate broker. If you need help finding a realtor, please try our Find a Realtor® service.

Should I get pre-approved for a mortgage before buying an REO?
Yes!!! Pre-qualifying for a loan is important for a potential homebuyer because it helps ensure that the buyer is in a financial position to purchase a property, and it places the buyer in the strongest possible position to negotiate with the selling agent of the REO property. When a potential homebuyer already has pre-approved financing in-hand, negotiations with REO selling agent and the lender go much smoother. Pre-approval gives you the homebuyer a concrete idea of what you can afford and shows the selling agent that you are serious about buying a home.

What type of lender should I look for?
When buying a REO property the best type of lender to work with is one who understands the re-possession process. A knowledgeable lender can guide a homebuyer through any potential pitfalls that may crop up and ensure that the proper steps and procedures are being followed, such as ensuring that the property being purchased is FHA-compliant.

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