You can find some hidden gems in this alternative purchase!
There’s a very good real estate opportunity in which one might buy a property from a homeowner in financial distress before actual foreclosure proceedings have occurred. It is a complex legal procedure and takes time, but it worth it.
As a prospective homebuyer in Italy interested in bargain properties and affordability, you may consider buying a house from someone who can no longer make the mortgage payments and is, therefore, being foreclosed upon.
It is important to understand, however, that this special purchase process involves many phases, with differing legal implications as to who you would be dealing with and just how good a financial deal you might get. This procedure is full of variables and can be determined after
What “Pre-Foreclosure” means?
Is the preliminary phase of the foreclosure when the homeowner has fallen behind in payments of the mortgage or financing related to the house.
It is in the early stages of foreclosure where the lender has filed a notice, sent a formal cease and desist letter, or started already a lawsuit to officially begin the foreclosure process, but the foreclosure sale has not yet taken place. There are various kinds of default procedures, such as “pignoramento” and is connected with the procedure of “esecuzione forzata” and Italian Court Auctions and Sales are defined “Asta giudiziaria”.
During the pre-foreclosure phase, the homeowner generally has a certain amount of time to catch up on past-due mortgage payments plus fees, sell the home to pay off the loan, or work out an alternative to foreclosure, like a mortgage modification, short sale, or deed in lieu of foreclosure. It is crucial to have the professional legal assistance from a lawyer to find out the best legal protection.
Purchasing a Pre-Foreclosure House.
From the buyer perspective, pre-foreclosure can mean a great occasion to find an out of the market property with a good potential profit. But it’s entirely possible that the homeowner has not yet taken active steps to list the property for sale – or even definitively decided to sell it. That’s another good reason to be in touch with a Lawyer that has access to pre-foreclosure cases and properties. An offer from an interested buyer could also solve the issues of the debtor becoming a Win-Win investment. Every part is satisfied.
In this way, a buyer can find cheap homes that can give high rental yields before the House Auction.
Of course, a savvy real estate buyer in such a situation will be primarily interested in properties that are worth more than their homeowners owe on the mortgage. That’s because will be possible to offer less than market value and get a bargain property and the same time helping the homeowners get out of his debts.
If the seller owes more than the property is worth and can’t make up the difference or negotiate an agreement with the lender, the only alternative short of foreclosure is a short sale, in which the bank agrees to the sale of the home for less than what the owner owes on the loan, with the judicial procedure costs included.
This kind of sales however need to be done in a proper way and with a strict timeline. That means you would have to close the deal by then, for example: before the lender puts the house up for auction. Once the auction takes place, the home is considered foreclosed.
Contact Govoni Law for more information on buying distressed, pre-foreclosure or foreclosed properties in Sardinia, Italy.