mortgage auctions: What are they, how they work and how I buy a house safely?.
Los mortgage auctions can represent an opportunity for invest in real estate and get good returns.
And You are not a formal or regular worker or you are young and therefore your income is not enough to pay a mortgage payment.
Think about purchase a property by foreclosure it is an excellent choice for you. Especially since the properties do not stop increasing their value. However, it is important that you take into account important aspects before starting.
What are MORTGAGE AUCTIONS??
If you wonderWhat is a mortgage auction? Many people who at the time managed to get a mortgage through commercial banking, But for various reasons they lost their jobs and stopped paying their loans., they have become debtors.
As a result of the lack of mortgage payment, the property falls into past due portfolio. And in order to recover part of the amount of financing used to pay for the purchased home, banks sue people who fail to fulfill their obligations and foreclose these properties.
Fraud in mortgage auctions
Once the lawsuit is won, They put the rights to these properties up for sale at prices below their commercial value, what is known asjudicial auctions o bank auctions.
This means that the property at auction belonged to some subject, for not complying with the obligations established in your mortgage, breaches his contract and loses the rights to the property. For this last, The creditor has the right to file a lawsuit to recover the debts through the auction of said property..
Are Mortgage Auctions for me??
There is a lack of knowledge of how the mortgage auction houses.
They are another option for investing companies who know how to deal with banks than for people.
Enter the topic of houses in mortgage auction is not easy, It is a topic that is not very accessible and full of taboos.
The truth is that many people do not know how the bank mortgage auctions and if they really work to buy a property in good conditions to live in and cheaper.
Mortgage bank auctions are ideal for investors
Those who can participate in the purchase of these properties are investors, companies that already know the subject and why, besides, buy a package. Not just a house or a building. But a package that can bring good properties and others in bad condition..
Thus, Those who purchase these packages must be prepared not only to know how to market the properties or also known mortgage auction houses good but also bad (those that the banks add to them as a filler, but they are a condition to buy the others, properties that do have a recognized value).
But they must also be prepared and have expert lawyers on the entire legal issue of succession, award, etc. because they are properties that the bank took over from their owners for a reason and are now auctioning them off..
Most of them are worth more if the trial is about to be resolved and are worth less if the trial will take longer or is indefinite..
The experts know this, That's why only they can get into the issue and legalize it before selling it to individuals..
He 80% of people who purchase HOUSES AT MORTGAGE AUCTIONS son investors, people who really have to achieve very high performance, but they are willing to wait their time and the capital gain will always increase..
How much does it cost to acquire a property at a mortgage auction??
He cost of a property at mortgage auction It will always be less than its market price, that is to say, at its commercial value, which is precisely the characteristic that makes the sale of these properties a more attractive option for buyers..
Either as an investment and then sell the property at its commercial value and thus obtain a significant percentage of profit., O well, simply to acquire a home at a more affordable price.
The amount, of course, will depend on the characteristics, location and conditions of the property, however, This price can be 30 Or until 60 lower percent of the value they could have in the market since this is established through a judicial appraisal.
How safe is it to buy a foreclosure home??
Is it safe to buy houses inmortgage auction? It is safe, in the sense that the process is carried out with the accompaniment of a certified advisor, who is in charge of ensuring that everything is done in order.
But it involves some risks: The previous owner or owner who owes the bank can continue in the property.
How long does a mortgage auction take??
The homes withmortgage auction They can be very low priced (until 60% of its real value) and preserve and even increase your capital gains once the debt has been discharged.
Keep in mind that to get to this, you should wait approximately a year for the legal situation of the property to be resolved.
Advantages of buying properties at mortgage auction
The main benefit of buying a home through a mortgage auction It is without a doubt that of obtaining your house at a considerably reduced price and that therefore can be within a greater reach according to your possibilities., or it can mean significant capital savings that you can use for a remodel or extension of your home..
In addition to this, al buy a property at mortgage auction you will not have to pay advances, Your payments will be made through nominative documents, and the process to follow will be a legal process carried out before the court or a notary public.
How to buy a mortgage auction house with Infonavit?
Canbuy a property infinish with a mortgage or Infonavit loan? It's not possible, the person who acquires a property infinish You have to pay it in cash and with your own resources.
Risks and disadvantages of bank mortgage auctions
Yes ok, opt for a mortgage auction of houses has its benefits, It is also important that you consider the risks or disadvantages of this type of property purchase.. These are:
How can I buy an abandoned house?
How to buy an abandoned house
- Have you ever thought about the possibility ofbuy a house what have you seenabandoned for a long time? …
- Ask neighbors about the house. …
- Request information from theproperty. …
- Request permission to enter. …
- Get advice from a real estate agent. …
- Consult a lawyer.
How to buy houses at foreclosure safely?
Buy houses at mortgage auction It could be a good real estate investment opportunity., However, it is necessary to take these aspects into account:
- To be sure that the home is owned by the bank and not a third party, check the condition of the property in thePublic Property Registry.
- Request areal estate appraisal to review all aspects of the property and its surroundings. With this study you will know the real value of the property and its physical condition.
- So that everything is done according to the law, before handing over any sum of money, Get advice from an expert and go to a notary public. With this you will avoid falling into real estate fraud.
- Investigate the company that advertises the house for auction, you can start with their company name or website. If you cannot get information about the organization, It is best not to make a deal; it could be a ghost company.
Remember thatso that the purchase of a property at mortgage auction means a good investment, Consult with a notary or lawyer to take into account the procedures and expenses that you should consider in your budget.
Consultants specialized in mortgage auctions recommend you:
- You must have the total amount of the price of the property, since this must be paid in cash.
- The taxes to be covered will be higher
- You will have to wait approximately one year for the operations to be completed to be able to take possession of the property..
- You cannot visit the house before purchasing it, You can only know it through photographs or plans.
- The success of these operations will depend on a judicial resolution.
- You may be exposed to possible fraud, so if you opt for this type of purchase it will be essential to get advice from an expert.
- If there are payments that are not up to date such as property, water or other services, You will be the one who will have to take care of the debt.
Where to find Mortgage Auctions
As we mentioned in this article, It is best to advise you with real estate agencies specialized in Mortgage Auctions– Also Banks and Financial Institutions They have sections for mortgage auctions. Or consult at real estate portals most of them have special auction sections.
Depending on where you want to acquire the Mortgage Auction, this is the company you should approach.
For example, if you want to acquire a Mortgage Auction in Mexico, you can consult https://www.remateshipotecarios.mx/
The real estate portal INMUEBLES24 has an exclusive section of Mortgage auctions