Utah Foreclosure Investing

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How to invest in foreclosure properties?

What is a foreclosure and how does foreclosure investing work?
In the state of Utah when a home owner has missed mortgage payments and the home owner's lender has reported the owner as delinquent, a notice of default (NOD) is recorded as public record with the county in which the home owner lives.

Trustee Sales
It is usually 90 days from the notice of default that the property will be sold at public auction through a "Trustee Sale" or otherwise known as a foreclosure auction. Since most mortgages are secured by a Trust Deed in the state of Utah, the Trustee of the Deed (usually an attorney appointed by the bank/lender) is the one who handles the trustee sale. The Trustee Sale usually takes place at one of the local county court houses. There the trustee will start the bidding on the property that is being foreclosed on.

The lender or bank that is foreclosing may or may not set a minimum bid prior to the auction. Foreclosure investors will typically only look at homes that have a minimum bid set prior to the auction. This allows the investor to go and preview the home in a short amount of time prior to the auction. The properties that do not have a minimum bid prior to auction typically have a starting bid near or around the amount that the lender is owed. In a depreciating market the amount owed is usually higher than fair market value.

When the auction begins cash investors begin to bid.

In order to purchase a property at a trustee sale/foreclosure auction the foreclosure investor who is the winning bidder must deliver typically $5,000 non-refundable earnest money in the form of certified funds at the time they win the auction. The remaining balance of the purchase price must be delivered to the trustee within 24 hours. In other words you must have cash on hand in order to purchase a property at foreclosure.

For buyers who are looking to purchase a property at auction and that do not have cash there are ways to purchase without cash. Community Real Estate has a network of likeminded foreclosure investors with whom you can partner and have cash on hand. We also make recommendations on hard money lenders who specialize in foreclosure investing. To find out more please fill out the form at the bottom of the page. It's FREE to look into and there's no obligation.

If you are an investor who has cash on hand we can also help you. The foreclosure sales are highly competitive. We have teamed up with some of Utah's best foreclosure investors to help you secure the property you are looking for, without having to personally bid at the trustee sale and risk paying more for a property due to the demand and competition.

Bank/Corporate Owned Properties
Only a select few properties sell at the trustee sale to foreclosure investors. If there are no foreclosure investors willing to pay the amount that is owed to the bank, then the bank ends up being the highest bidder at the auction and the property is repossessed by the bank. At this point the property becomes bank or corporate owned and then is listed with a local real estate broker.

Every bank owned property for sale in the state of Utah can be viewed on our site and can be shown to you at anytime.

Our Services
Community Real Estate can help you purchase any foreclosed property that you see on our website, any other website, newspaper, magazine, or publication; we can also help you acquire any property that is not foreclosed. And we do all of this for FREE. Our goal is to help you find the best home at the best price. We do this by setting you up on a "Discounted Property Alert" based on your criteria. IT's FREE! You will virtually be one of the first one to know about the discounted homes that come available and hit the market.

How to Avoid Foreclosure
Home owners can avoid foreclosure in a number of ways. Here are a few: 1) bring the mortgage current by paying all principal, interest, and late payments due, 2) deed in lieu of foreclosure, 3) sell, 4) rent, 5) request a loan modification, and/or 6) short sell.

Most home owners who are upside down and would like to stay in their home but can no longer afford their mortgage payment can request to do a loan modification. For those homes owners who would prefer to move or where the lender has denied a loan modification should attempt to sell their home short if the home has no equity.

Short Sales
A short sale is when a home owner attempts to sell their home for less than what they owe on the home. The process can be a long process, but will help the home owner avoid foreclosure and may be able to satisfy the debt that is owed, helping them in the long-run keep their credit in good standing.

Those looking to purchase a short sale can greatly benefit from the discounted prices. In a short sale situation because the home owner must prove a hardship to the bank and the bank must evaluate whether or not they are willing to accept less than the amount owed it can take some time before a short sale is approved. Because of this longer process short sales typically sell at a greater discount than other properties.

If you have time on your side we can help you invest in short sales. The discount on short sales can in many ways be better than even purchasing a home at a trustee sale or even bank owned. The goal when looking at short sales is to make sure that you do not put all of your eggs into one basket and settle on one short sale. You should focus on offering on multiple short sales because of the risk involved.

In some cases though the home owner has initiated the short sale process, their lender still has the right to foreclose on the property. However, most lenders are willing to work with home owners to avoid foreclosure. This is due to the fact that a foreclosure usually costs the bank a lot of money. There are also government programs that benefit lenders who successfully work out a short sale with homeowners.

Summary of How we Can Help You:

1. Free information anytime you want it. Make sure to create a www.CommunityRE.com account to access and view our discounted properties. 
2. Provide you with "Discounted Property Alerts". Be one of the first to know when a great deal hits the market for bank/corporate owned properties or short sales.
3. For cash investors we have teamed up with the best foreclosure investors in the state who can provide you with the property you are looking for without having to compete at the foreclosure auctions.
4. For Investors with a good down payment but not the full balance of purchase price in cash we have a network of likeminded investors who can team up with you, or we have a network of hard money or conventional lenders who can loan you the money.

For FREE Info on how we can help you with NO OBLIGATION please fill ou the form below. When buying a listed home our services are always FREE!