In the decling phone of a real estate market cycle, many homeowners fall behind on mortgage payment and end up losing their homes in foreclosure. Some seek help early and are able to relieve their debt burden and save their credit. Others miss the opportunity and see their homes sold at the courthouse auction or repossessed by the lender, while leaving a blemish on their financial record. Lenders dislike holding repossessed homes (REO) and are motivated to sell them at a discount.
Buyers and investors my acquire foreclosure properties at a discount with some promises. They buy from the deliquent owners in the pre-foreclosure stage, or at the trustee sale, or from the lenders in the REO stage. Each of these three stage involves and uncooperative, buying at trustee sale requires full cash and permits little or no prior inspection, etc. Only a small percentage of real estate agents are properly trained to assist in foreclosure transactions.
California has foreclosure laws to proetect the equity and property of the owner-occupants. Civil Code 1695 pertains to home equity purchases, Civil Code 2945 pertains to foreclosure consultants, and Civil Code 890 pertains to rent/equity skimming. These laws define specific rules for the seller, equity purchase, and agent/broker, and are meant to deter unconscionable acts against distressed homeowners. Violators are subject to servere civil and criminal penalties. The California Association Realtors also has special forms to be used for specific situations If you are selling or buying foreclosure properties, make sure your counterpart and agent follow the applicable laws and rules, and be aware that the legal doctrine of Respondeat Superior applies (i.e., buyer and seller are liable for their agent's misconduct.)
I work with sellers and buyers of foreclosure properties as a broker/investor within the legal and ethical boundaries. If you are facing foreclosure (or simply overwhelmed by your mortgage debt) and need help to relieve your debt burden and save you credit, please negister below in the Seller Section. If you are a buyer-occupant or investor looking to buy foreclosre properties at a discount, please register below in the Buyer section. I will treat your private information with the strictest confidence and respond to your request promptly.