Foreclosure is a situation wherein the home’s proprietor, or resident, has become incompetent in paying the corresponding disbursements included in the mortgage, both the full principal and the interest to the lender. When a property is foreclosed, the property is seized by the bank or lender, the residents are evicted, and the property can be sold to another buyer at a lower price after continuous missed payments, as established in the mortgage contract.
For financially conscious homebuyers considering buying foreclosed homes, here are a few tips to guide you throughout the process:
• Research – Similar to buying any property, due diligence is necessary when purchasing foreclosed homes. Inquire with banks, insurance firms, housing organizations, and government financial institutions for assurance and a hassle-free process.
