Tracking Down Foreclosure Properties for Real Estate Transactions
By: Tilden Moschetti
If you are a first-time homebuyer or seller, there is a lot that you need to know about a real estate transaction. Buying a house involves a lot of money, and this is on top of escrowed funds, the down payment, and the anticipated monthly mortgage payment. As such, throughout the entire home buying process, utmost diligence is necessary.
Before proceeding to buy a house, there are several things that hopeful homeowners must take into account. This includes the budget for projected monthly payment, funds in escrow, good faith estimate, homeowners insurance policy, and other paperwork prepared by the title insurance company and mortgage lender.
What this article will focus on are:
– Homebuying when foreclosed properties are involved
Before worrying about mortgage payments and your obligations as a borrower, the first step to owning and buying a home is getting in touch with a licensed real estate agent, broker, or realtor. Real estate brokers or agents will give you lots or houses that are up for sale, with a purchase price that would eventually be agreed upon. Keep in mind, however, that not all real estate agents and brokers are created equal.
Novice homebuyers looking into foreclosed real estate property should find a good real estate agent or real estate broker who specializes in that area. A common piece of advice from real estate investing experts is to look into local real estate publications. Agents regularly working with banks often advertise their expertise on foreclosed properties. Likewise, they are often really experienced with finding a homebuyer for foreclosed properties in the real estate market.
An aspiring real estate property owner looking into repossessed homes that are being sold by the government may try visiting the website of the Department of Housing and Urban Development.
What to do after finding a property
If the buyer needs to get a mortgage company to approve your mortgage loan, make sure that there are clear terms on the principal and interest and the total amount owed. Aside from making payments to your lender each month, remember that you also have to pay your mortgage insurance premium and make real property tax payments for the new home.
Keep in mind that an aspiring homeowner must also know how to negotiate when escrows are involved. It is not just about knowing the best interest rate for borrowers or making monthly payments to lenders. When the escrow process is involved, expert legal representation is crucial for both buyer and seller.
What some people do not know is that an escrow agreement and escrow instructions walk-through must both be taken very seriously. Escrow services (offered by an escrow company or escrow agent) are crucial for the home sale and purchase agreement to be finalized. A mortgage lender would usually ask for an escrow deposit or an earnest money deposit into an escrow account. It is a sum of money that is placed in escrow accounts, which are essentially held by a third party. Since an escrow fund involves a neutral third person or a neutral third party, all parties benefit from the security it provides. Such deposits (escrow funds) are held in escrow until both parties involved in the transaction meet the conditions that were set.
The need for reliable Calabasas real estate attorneys
Keep in mind that there are several factors to consider when buying real estate. Negotiations between home buyers and sellers can be quite complex. Legal advice is key to ensure that the home purchase is pursuant to state law and federal housing guidelines.
All disclosures and questions on closings must be made before closing documents are prepared. After the escrow period and before closing, work on everything that you are obligated to do, particularly those involving lenders, your closing agent, and the title company. After closing, the earnest money that was deposited shall then be released and may be applied to real estate closing costs. Atrusted Calabasas real estate attorney can explain all that you need to do for real estate settlement.
All these are especially true if foreclosed properties are involved, since the cost of buying and rehabilitating the house, the cost of financing and insurance, and the legalities of selling a house can be quite complicated to grasp.
For clarifications on any of the above, give us a call. Talk to us at Moschetti Law Group and consult with a trusted Calabasas real estate attorney for legal representation and advice.
At Moschetti Law Group, our practice serves the needs of Founders by providing real estate law and real estate syndication attorney services to Founders. Whether you are the Founder of a real estate empire or building a business and need assistance with purchase and sales, real estate transactions, or real estate litigation, we serve Los Angeles County, eastern Ventura County, and North Orange County from our office in Calabasas. We also have a primary focus on helping Real Estate Syndication Founders throughout the United States with forming their syndication, understanding crowdfunding, private placement memorandums, and operating agreements.