Midvale Foreclosures

Midvale Utah Foreclosures

There are different stages of the foreclosure process where real estate investors and home buyers have opportunities to purchase foreclosured properties. Use this link to view properties in Midvale that have already foreclosed and are owned by the bank.

Midvale Foreclosure Search

Below is a summary of the foreclosure stages, and how you as a buyer can act to find yourself a Midvale foreclosure deal.

Pre-Foreclosures in Midvale

The foreclosure process begins when home owners miss several payments and receive a "notice of default". The notice of default tells distressed homeowners that they are now responsible to pay the loan balance in full, or else the property will be sold at a public auction. The notice of default is usually received after about four missed mortgage payments. The owners usually have about three months before the foreclosure auction will take place. If you have received a notice of default, and would like a free consultation click this link: Stop Foreclosure

Many Midvale 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. These homes can be found on sites like Foreclosure.com, Realty Store.com, and Realty Trac.

Learn more about investing in Midvale pre-foreclosure homes.

View pre-foreclosure homes now.

Short Sales in Midvale

Owners of pre-foreclosure homes and condos often owe more than the property is worth. By refinancing, and taking out home equity and second loans they make themselves vulnerable to foreclosure. They forget that home equity loans, are "loans" and that they will have to repay them. It is still possible to purchase homes that are upside down by using "short sales". Banks do not want properties to foreclose. It is in their best effort to lose money by approving a short sale than to allow the property be sold on the court house steps. When a Midvale house is in short sale status, Many Midvale short sale houses are listed for sale on the MLS. They are noted with a special "SS" mark by the listing.

Learn more about the Short Sale process and investing in Midvale Short Sale Homes.

View Midvale MLS listings for sale under short sale status.

The Trustee Sale -- Foreclosure Auction

A foreclosure sale, foreclosure auction, or Trustee auction is the actual Foreclosure. In Midvale, this auction takes place a the County courthouse. This is a public auction where anyone may bid on the property if they:

Provide $5,000 certified funds prior to bidding. An "official check" will not work.
Have the ability to pay off the entire purchase price by noon of the following day.
Are willing to take the risk of purchasing a properties without warranties express or implied. Houses for auction at the county courthouse may still have judgements tied to them.
Are willing to evict the current occupants. Many foreclosure properties still have residents needing eviction.

Purchasing a property at a Trustees Sale can be fairly risky. Some big investors purchase these distressed properties "site unseen." Many distressed properties are on the market before the auction but can not be sold in time. In these instances, investors can walk through them before the foreclosure auction, but often times they are not. When a distressed home has several loans against it, and the amount of the sale is not enough to satisfy all the liens the junior liens get shafted. Midvale Foreclosure Auction homes can often be purchased at a large discount when there isn't a lot of competition. Homes with second loans are prime candidates for Trustee auction deals.

More Information on Midvale Trustee Sales and Foreclosure Auctions

View Upcoming Midvale Trustee Sales Now

Midvale Utah REO - Bank Owned Homes - Post Foreclosure homes

When nobody bids on a home at the public foreclosure auction, the property becomes becomes a Real Estate Owned (REO) or bank owned property. The large majority of the time Midvale REO homes will be listed with a Realtor and are found listed on the MLS. In the MLS notes 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 three months. Midvale REO Homes are sold "as is."

More information on Midvale REO Homes

View Midvale REO Homes Now

Midvale HUD Homes

One of the most common phrases associated with foreclosure, is HUD Homes. Midvale 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. The fact is, HUD homes are the hardest foreclosed homes to purchase as an investor.

More information about Midvale HUD Homes

View Midvale HUD Homes for Sale Now

Rehabbing and Flipping Midvale HUD Homes

HUD Homes and Foreclosure Houses are usually in pretty beat up condition and require some rehabbing. Not all Midvale foreclosures are fixer uppers. Many distressed properties are newer and in very good physical condition. For those with craftsman skills, rehabbing foreclosed homes is an excellent way to invest in real estate.

Will You Be A Foreclosure Statistic?
By Peter G. Miller

Most owners who lose their homes in a foreclosure never thought it would happen to them. It always happens to someone else — you know — the people who get sick, laid off, have an accident, that sort of thing.

So you might think: Foreclosure. That will never happen to me. No way. But lurking in millions of mailboxes each month is a financial time bomb, a threat to homeownership never before seen in this country.

For the past few years the nation has been flooded with forms of financing which allow buyers to purchase homes that were once unaffordable. The essential deal is this: You buy now, pay less than you should each month and then within five years sell at a big profit or refinance.

Truth is, it's been a great ride. Many people have followed the formula and made a ton of money. But like musical chairs, you just know that a bunch of people will be caught in the wrong place at the wrong time.

In a growing number of metropolitan areas, the wrong time is now. Just look at what's happened to home prices during the past five years:

Metropolitan Area Home Price Trends

Second Quarter By Year	Number of Metro Areas	Metro Areas with Double Digit Increases	Metro Areas with Declines
2002	113	28 (24.7%)	10 (8.8%)
2003	126	40 (31.7%)	0 (0.0%)
2004	128	49 (38.2%)	11 (8.5%)
2005	149	67 (44.9%)	7 (4.7%)
2006	151	37 (24.5%)	26 (17.2%)

Source: National Association of Realtors

"The meaning of this chart is plain," says James J. Saccacio, chief executive officer of RealtyTrac, the leading online marketplace for foreclosure properties. "In the summer of 2003, when mortgage interest rates reached bottom at 5.21 percent, no metropolitan area saw a price decline in the second quarter. The market was at its top in 2005 when almost 45 percent of all metro areas saw double-digit price increases. In 2006 the marketplace radically changed. Now we have the greatest percentage of second-quarter price declines in the past few years, virtually double any comparable period."

Okay, so why are falling metropolitan prices a problem? If you're not selling and you're not refinancing, who cares?

Falling prices are not a problem for those with fixed-rate loans. But for millions of borrowers with the latest forms of low-ball financing, falling prices can be financially lethal.

Imagine that you bought a property a few years ago. Since values were going up it made sense to buy the biggest home you could afford and to buy that big house you got a $400,000 interest-only loan at 5.6 percent, a mortgage amount that covered 100 percent of the purchase price.

For the first five years the loan was wonderful: Monthly payments were $1,867 plus taxes and insurance. But after five years, the loan automatically converted to a one-year ARM. The one-year LIBOR rate that was originally at 3.60 percent five years ago reached 5.45 percent this August. Combine the LIBOR index rate with a 2.0 percent "margin" and your loan rate jumped to 7.45 percent.

After five years not only does the rate go up, the mortgage bill now includes the expense of monthly principal payments to reduce the loan balance. The monthly cost for principal and interest? It's now $2,943. Taxes and insurance are again extra.

“Those low-payment loans that looked so good a few years ago are going into their second phase,” says Saccacio. “Each day more and more borrowers are finding that the low 'start' payment is gone and that steeper, fully-amortizing payments have now kicked in. At the same time, homes that were once easy to sell are now harder to market. It's a brutal combination and what we're seeing in the Fall of 2006 is likely to get worse.”

The instant solution to high monthly costs is to sell the property. During the past five years many areas have seen huge price increases. The odds are good in most markets that a seller with several years of ownership at this can readily sell, often with a significant profit.

But as the market evolves the odds may become less attractive. Not all markets have seen double-digit growth. In such areas price stagnation or actual declines can lead to huge inventory increases. To sell in down markets homes owners will be forced to offer not only price discounts but other incentives such as "seller contributions" to help buyers at closing, new carpets, new kitchens, moving allowances, etc.

But selling also may not be an option. Not only can a sale in a down market produce a bankrupting loss, but losses on the sale of a personal residence are not tax deductible.

What can you do to avoid being a foreclosure statistic, to not get caught in the impossible position of loan costs that are too high and market values that are too low?

"Act now," says RealtyTrac's Saccacio. "Don't wait for the hammer to fall. If you see a mortgage problem looming in the next year or so, refinance to a long-term, fixed-rate loan before your credit report shows any late or missed payments. Take a careful look at traditional loans with liberal qualification standards such as FHA or VA financing. Speak with your lender about a loan modification and see if your adjustable-rate mortgage has a conversion feature, a right to switch to a fixed-rate within the first few years of the loan term. Because a conversion is a loan modification and not new financing, conversion can be quick and cheap."

If you find a situation where the property cannot be reasonably refinanced, if unaffordable monthly costs are certain, then it makes sense to sell now and move to a less-expensive home with reduced debt, lower monthly costs and fixed-rate financing. Moving is a way to avoid foreclosure and dodge bankruptcy — two events no property owner should experience.

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Peter G. Miller is the author of The Common-Sense Mortgage and is syndicated in more than 90 newspapers