Clearfield Utah Foreclosures
In Clearfield, there are different stages of the foreclosure process that present different opportunites and challenges for buyers and real estate investors to purchase foreclosured properties. Clearfield City offers a hot bed of foreclosure activity. According to RealtyTrac, there are more than one hundred preforeclosure listings and over 80 foreclosed houses. Foreclosures can happen in any clearfield neighborhood including: North Side of town include, Jamarl Acres, Clearfield Villa, Yorkshire, Lakeview Subdivision, Green Hills, Yorkshire Place, Rose Garden, Country Village, Pacific Park, Shire Meadow, Rose Garden, Westwood Estates, Autumn Ridge, Pace Farms, Chelmes Farms, Park Village,Layton Park, Central Park, Valley View, Clearfield Heights, Valhalla, Smith Village, Smith Estates, Phyllis, Carolyn Park, Fox Hollow, West Park, Briar Wood Hollow, Caralyn Park, Major Meadows, Springfield Estates, Falcon Meadows, Chelmes Farms, Falcon Meadows, Chrissam Meadows, Jamal Acres, Melanie Acres, Layton Park, Meadow Park, Wedgewood, Katies Place, Wedgewoods, Antelop Crossing, Elmtree, Westwood, Autumn Ridge, Mane Estates, and Chelmes Farms.
Here is a brief summary of the different foreclosure stages, and how you as a buyer must go about finding and investing in Clearfield foreclosures during the different stages of the foreclosure process.
Clearfield Pre-Foreclosures
The pre-foreclosure stage begins when home owners receive a "notice of default". In Clearfield, a notice of default is usually received after about four missed mortgage payments. The owners usually have about three months before the foreclosure auction to find a way to make up the missing payments and bring the loan current. However, usually they are monetarily unable to do such. If they had the money, they most likely wouldn't be in default.
Many Clearfield preforeclosures are for sale and are listed on the MLS. However, the majority of them are not for sale. Many real estate investors attempt to contact these distressed owners, and offer to purchase their homes below market value to help them avoid foreclosure and preserve their credit.
Clearfield Short Sales
Quite often the owners of the pre-foreclosure homes or condos are upside down. They owe more than the property is worth. It is still possible to purchase these homes. To help avoid foreclosure, banks will often times approve a "short sale." When a Clearfield house is in short sale status, the bank forgives a portion of the debt and sells the home for less than what is owed. For banks, foreclosing is a very expensive process and they are often better off taking a "short sale" than foreclosing. Many Clearfield short sale houses are listed on the MLS. They are noted with a special "SS" mark by the listing.
The Trustee Sale -- Foreclosure Auction
A foreclosure sale, or Trustee auction takes place a the County courthouse. This is a public auction where anyone may bid on the property if you:
- Provide $5,000 certified funds prior to bidding. An "official check" will not work.
- Must pay off the entire purchase price in full within 24 hours.
- Properties sold at the public auctions are sold without warranties. There still may be judgements tied to the property. The properties might even still have residents needing eviction.
Purchasing a property at a Trustees Sale can be fairly risky as a lot of the time these homes are purchased "site unseen." Sometimes the homes are on the market and investors can walk through them before the foreclosure auction, but often times they are not. When a distressed home has several loans on it the junior liens will usually get shafted. Clearfield Foreclosure Auction homes can often be purchased at a large discount when there isn't a lot of competition.
Clearfield Utah REO - Bank Owned Homes - Post Foreclosure homes
When nobody bids on a home at a public foreclosure auction, the lender bids on it for the amount owed. This becomes a Real Estate Owned (REO) or bank owned property. The large majority of the time Clearfield REO homes end up listed with a Realtor and are found listed on the MLS. In the MLS notes look the owner will usually be listed as "REO" or "Bank Owned." Banks don't like carrying homes and so usually will price it low to try and sell within tree months. Clearfield REO Homes are sold "as is."
Clearfield HUD Homes
One of the most common phrases associated with foreclosure, is HUD Homes. Clearfield HUD Homes are Bank owned homes that were secured by Government back loans. New HUD homes become available every Friday in Utah. HUD homes can usually be purchased below market value, but they can usually only be purchased by people intendinding to use the property as their personal residence. If a HUD home is on the market for several weeks, the bidding is then opened up to Investors. Once its open to real estate investors, its usually not the greatest deal.
Clearfield Utah HUD Homes
HUD Homes and Foreclosure Houses are usually in pretty beat up condition and require some rehabbing. Not all Clearfield foreclosures are fixer uppers. Many distressed properties are newer and in very good physical condition.
