One of the ways to save money on buying a home is to purchase a foreclosure. These homes usually come up at auction after they are repossessed by lenders.
A foreclosure is possible only after a lengthy notice and once enough time has been given to the original owner to cure the default. A property owner will potentially live in the home up until the public foreclosure auction sale, which happens after around six months of defaulted payments.
Pre-foreclosures are another good option for bargain hunters
If you’re interested in buying a foreclosed property, you may want to actually discuss buying a home in pre-foreclosure. A preforeclosure is an excellent choice when you’re looking for a bargain because the home hasn’t yet gone into foreclosure or been scheduled for an auction.
That means that there is still time to “cure the debt,” which means that you may even be able to get the property for less by paying off the remainder of the mortgage (which could be at a great cost-savings to you).
If you buy a foreclosure, can the original homeowner take the home back?
Some states have a post-foreclosure right of redemption. This is when the property’s original owner may reclaim the real estate by paying off what they owe plus any additional costs or fees. This is not something that exists in Arizona, so once you purchase a home through a pre-foreclosure or foreclosure process, you should own the home immediately.
There are benefits and downsides to buying foreclosures, so it is important for you to understand the laws in Arizona and how buying a pre-foreclosure or foreclosure could impact you or your legal property rights.