Buying A San Antonio Foreclosure Property

So, you might want to buy a "foreclosure?" 

You've heard a foreclosure might be an opportunity to snag a home for a bargain price.  But, what, exactly, is a foreclosure?

The term "foreclosure" is defined by the status of the property.

First, there is the foreclosure being auctioned at the courthouse steps by a trustee representing the lender after the homeowner has defaulted on the mortgage payments. This type of  foreclosure is risky and most buyers avoid taking the risk if they aren't well versed with the legal and technical aspects of buying a foreclosure auction property.

Second, there is the foreclosure that has already been sold at the courthouse steps and, more often than not, bought by the lender foreclosing on the property in the first place. These foreclosure properties are most commonly referred to as REO (real estate owned) properties, meaning they are owned by lending institutions. Usually, a REO is eventually listed for sale in the local Multiple Listing Service (MLS).

Third, there is foreclosure signed over to the government by a lender after a borrower has defaulted on a FHA or VA loan. The lender gets the loan insurance proceeds guaranteed by the FHA or VA program and gets off the hook. The government takes over, MLS advertises the property, and, through an intermediary asset manager, sells the property.

A foreclosure may be a good deal, but don't count on it in the San Antonio realty market. It seems like our market has stayed too healthy to drive down the value of foreclosures in good condition. The best foreclosures can even sell for a price above market value.

If you find a foreclosure that meets your needs, seek the assistance of an experienced realty advisor to help you through the bidding process.

We can help.  We're Stephanie and Randy Kelley, Realtors® of Keller Williams Legacy, San Antonio, Texas. If you have questions, need San Antonio realty or mortgage loan advice or assistance, or just want to chat a bit about the wonderful Alamo City, please call us at (210) 863-2661 or (210) 867-8743, or E-mail us at swkrealtor@aol.com or kelleybus@aol.com. Our SanAntonioHomeQuest.com Realty Solutions Team is always ready to help you with your home buying or selling needs.