Foreclosures in Provo and Utah County have substantially risen over the last year. According to RealtyTrac they are most highly concentrated in Utah County. Provo itself has more than a hundred preforeclosure properties and more than 85 Bank owned REO properties. There are different stages of the foreclosure process where real estate investors and home buyers have opportunities to purchase foreclosured properties.
Foreclosure investing has become a popular way to build real wealth during the struggling real estate economy. The term foreclosure encompasses many different aspects of the foreclosure process. Preforeclosures are homes that have received a default notice (NOD) and then a trustees notice that are headed for the foreclosure auction. These notices are public record and anyone can see them. Foreclosures can include preforeclosures, short sales, homes purchased at foreclosure auctions, REO homes, bank owed, and HUD homes.
Pre-Foreclosures in Provo
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 Provo preforeclosures are for sale and are listed on the MLS. However, the majority of them are not for sale. These homes can be found on sites like Foreclosure.com, Realty Store.com, and Realty Trac.
Short sales are a common segment in the BlankCity real estate market. On the MLS there are currently 29 active short sale listings within Provo City Limits. Utah County itself has more than 288 active listings that need, or have allready received short sale approval. Short Sales occur when sellers owe more on their home than it is worth. Short sales nearly always occur with homes in default. It is more beneficial for banks to allow the house to sell for less than what is owed rather than execute the foreclosure auction. These homes must sell quickly, and most lenders will settle for a fraction of the amount due.
When a a house is listed as a short sale, the asking price is discounted to get immediate offers. This asking price doesn't guarantee that the lender will actually approve the short sale request.
Many banks won't even consider a short sale packet unless there is an offer These homes are priced low so they can get the ball rolling.. This doesn't guarantee that the offer will be approved, and it often takes several months before the lender will even review the file. The MLS actually filters searches for short sales. Your Real Estate Agent can easily help you locate short sale preforeclosure properties in BlankCity Utah.
A foreclosure sale, foreclosure auction, or Trustee auction is the actual Foreclosure. In Provo, this auction takes place at the East Main Entrance of the Utah County Courthouse located at, 125 North 100 West in Provo. 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.
Provo 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 Provo 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. Provo REO Homes are sold "as is."
One of the most popular phrases associated with Foreclosures, is HUD properties. BlankCity HUD Homes are Bank owned homes where the loan was backed by the government. New HUD homes in BlankCity become available every Friday. HUD homes are normally listed below market value to encourage a quick sell. When they are initially listed, they can usually only be purchased by people planning an using the property as their primary residence. After a HUD property remains unsold for several weeks, the bidding is then opened up to Investors. If Once its open to real estate investors, it's probably not significantly below market value. The fact is, HUD homes are the hardest foreclosed homes to buy as a real estate investor. Occasionally HUD homes in more questionable neighborhoods are offered as part of the Good Neighbor Next Door program. This HUD program provides an opportunity for Teachers, Officers, and other public service workers to bid on HUD homes at half price.
