Gilbert Foreclosure Homes – Pre-Foreclosure Property Buyers

The top states for foreclosure figures last year in 2008 were Nevada, Florida, California, Arizona, Georgia, Michigan, Ohio, New Jersey, Indiana and Colorado, in that order. As we can see from this list Arizona is number four on the list, and one of the counties in Arizona encountering high foreclosure rates is Gilbert.

Gilbert foreclosure homes have been increasing exponentially and now there are a huge amount of these properties available to any willing property buyers. Buyers only have to look in the “notices for sale section of the local Gilbert newspapers to gain an idea of how serious the crisis actually is.

With the majority of US home buyers now purchasing property from the foreclosure market as apposed to the traditional property market, it makes good sense for anyone seeking to buy a home in Gilbert to look to the foreclosure market. Gilbert foreclosure homes will afford the buyer an opportunity to obtain a home that may be even better than they would be able to afford in the traditional market at a very good price.

But before rushing in where angels fear to tread it is a good idea to have some understanding of what it takes to buy a home in the foreclosure market. For instance there are three phases which take place during the foreclosure process:

1. Pre-foreclosure
2. Auction
3. Post foreclosure

Buying property in the pre-foreclosure phase and at auction carries more risk than once the property has been foreclosed, becoming real estate owned by the financial institution which loaned money for the mortgage to the borrower.

This is because property for sale in pre-foreclosure and at auction generally has liens against the mortgage, and lien holders must be paid in order for the new owner to have the deed transferred into his name. The property owner in foreclosure may have a second mortgage, tax liens and any number of other liens against the mortgage, and this could be the reason why they were placed in foreclosure.

Conducting a title search will reveal these liens to the prospective buyer, and any title search company is able to do this on the buyers’ behalf. It is also possible for the potential buyer to visit the deeds office him/her self and conduct a title search.

This is not the only aspect of buying in pre-foreclosure which carries risk. The home owner also has to agree to sell their home in pre-foreclosure, and this could take some hard work on the part of the buyer. They have to approach the property owner and hope that they divulge all the necessary information required to make a per-foreclosure offer.

In many instances the property owner in pre-foreclosure will be willing to divulge all information to the buyer as they actually don’t want the foreclosure process to go ahead. Selling a property in pre-foreclosure means the property owner will save them-self from a bad credit rating, and be able to continue with their lives as normal.

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