A Few of the Pros and Cons of Buying a Foreclosed Home

Foreclosure

buying a foreclosed homeApproximately one in every 96 homes saw a foreclosure filing in 2013, a number that had fallen to one in every 122 in 2015. However, just because a home is foreclosed doesn’t mean it isn’t a worthwhile investment. In fact, for many home flippers, buying a foreclosed home represents a major opportunity.

Homes are foreclosed for a variety of reasons, and a foreclosure isn’t a sign of low value. If you’re looking into buying a foreclosed home, here are a few things you should know.

What Happens After the Foreclosure Process?
When a bank forecloses on a home, it means that the tenant experienced some form of financial issue. Because there’s nobody living in that home to make mortgage or rent payments, the bank loses money. As a financial institution, losing money neither looks good nor benefits them in any way. As a potential buyer, that’s where you come in.

Benefits of Buying a Foreclosed Home
The primary reason to buy a foreclosed home is the potential deal you may get on a beautiful house. Any real estate attorney can tell you that the foreclosing lender doesn’t want to hold on to the home because, as previously stated, they’re losing money while it’s in their possession. As a result, they may offer it at a much lower price than it would be listed otherwise.

Home Upgrades
If you want to buy a foreclosed home, you can use the status of the house to your advantage. Because of the typically lower price point, it’s often much easier to purchase a better home in a neighborhood that is more desirable to you.

Financial Gains
Because the price you paid for the home is below market value, the decision to sell, even if the home depreciates, can result in some serious financial gains.

Cons of Buying a Foreclosed Home
In some situations, the disadvantages outweigh the potential gains when buying a foreclosed home, but the potential issues will vary greatly from case to case.

Overdue Home Repairs
Unfortunately, foreclosed homes can fall into disrepair while they’re uninhabited. Real estate lawyers have begun referring to these houses as “zombie homes” because of their distressed status. While you might buy a home for a great price, you should take care to have it properly assessed to find out what kind of work needs to be done.

Inherited Debt
When buying a foreclosed home, you may become responsible for the debts left by the previous owner. Before purchasing, you should make sure to take the time to fully understand the potential financial burdens you may be taking on with a foreclosed home.

In the end, foreclosed homes aren’t much different than any other homes on the market, with one major difference: the price. While they may have some financial strings attached, the advantages outweigh the negatives in a vast majority of cases.

Know Who to Call During These 3 Stressful Real Estate Issues

Real Estate Laws

boundary disputeCalifornia real estate law can be quite confusing. You may not anticipate ever having an issue, but you never know when a problem might arise. Problems with neighbors, problems with landlords, problems with banks, or problems with the law can all potentially lead to unwanted stress and living uncertainties.

Here are a few of the potential real estate issues that could arise in California.

Boundary Disputes
One of the most frustrating real estate problems is a having a boundary dispute with your neighbor. It could come up as soon as either you or your neighbor move in; in other cases, disputes arise when you least expect them. To avoid these unwanted boundary disputes, make sure that you have all real estate documents stored in a safe place so you can access them when necessary. It’s also recommended that you consult with a real estate attorney during any dispute as well.

Eviction Process
Being evicted can be one of the most stressful events in a person’s life. There is so much uncertainty about what’s to come and where you should go. It’s important to be 100% sure that your landlord is acting lawfully and that all eviction notices were given in the allotted amount of time. In California, if a tenant has lived in the property for more than one year, the landlord has to provide a notice to vacate at least 60 days prior to the eviction.

Foreclosure Process
Another scary time in a person’s life is during a foreclosure. This can be even more intimidating because banks are involved and the repercussions could last a lifetime. It’s important that you contact an experienced real estate attorney as soon as you think you might be in danger of being foreclosed. There are plenty of laws that protect your rights of fair notice and amount of time to come up with the money.

Don’t handle these stressful situations on your own, because they can go from bad to worse quickly. Consult with a real estate attorney who can help. If you need any assistance with real estate in California, contact the DiJulio Law Group today.

3 Ways to Speed Up the Eviction Process in California

Real Estate Laws

lease agreementThe eviction process in California can be one of the most stressful times in a person’s life. There is so much uncertainty going on, as well as financial repercussions, that you’d rather just put the entire situation behind you and move on with your life.

The length of time it takes to resolve these eviction cases or see them through can be extremely long. Whether the case is uncontested or contested, evictions are lasting longer than ever before.

There are a few reasons that evictions are taking so long today, including confusing lease agreements, an increase in the number of evictions tenants have to deal with, and an overall increase in the amount of eviction cases that make it to court. If an eviction does reach a court setting, a judge will hear and render a decision within 20 days after the case request.

Here are a few ways to speed up the eviction process and put the entire situation behind you as quickly as possible.

  • Work With the Professionals — Fighting any case by yourself can be even more stressful than the initial problem. Even if you know you’re in the right and have plenty of proof against the tenant in question, going against an opposing attorney can be overwhelming. Make sure you consult with a real estate attorney you trust who is knowledgeable in all facets of real estate law. They can take a look at the lease agreement in question and decide what options you have.

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  • Have All the Necessary Information — It’s important to provide your real estate agent with any and all documentation that might assist them in resolving your case. Make copies and provide the real estate agent with the lease agreement, proof that you gave the tenant enough warning prior to the notice of eviction, as well as the tenant application and ledger.

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  • Note and Date Everything — Leading up to the eviction notice, and especially in the days after the notice was provided, make sure to document and date everything so both your real estate agent and the judge — if it reaches the court — can have a succinct timeframe of the eviction in question.

How the Foreclosure Process Works: 4 Steps

Foreclosure

foreclosure processProperty law can be confusing. If you aren’t a practicing real estate attorney who has gone through years of schooling on property law, you probably feel overwhelmed when it comes to real estate issues. Contracts, zoning restrictions, foreclosure processes, evictions, buying, renting, selling, etc., can all be extremely confusing.

The foreclosure process, for instance, is one of the most complicated aspects of property law — and it’s one of the most stressful situations to deal with. Here is how the foreclosure process works:

  1. Missed Payment Notices — The first step in the process occurs after you’ve missed a few mortgage payments, when your bank will send you a missed-payment notice. You should pay your monthly mortgage before or on the due date, but most banks will allow a few days of a grace period. If you show no signs of payment, however, they’ll send the notice informing you
    that you need to pay as soon as possible to avoid further action.

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  2. Notice of Default — Once your missed payment becomes more than 30 days late, your bank can send you a notice of default (NOD). The NOD, which includes your personal and financial information detailing the specifics of the missed payment, essentially means that you have to pay or the bank will be forced to take supplementary actions.

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  3. Foreclosure Notice — If your bank believes you’re intentionally ignoring them, or are unsatisfied with your responses and/or continued lack of payment, you will eventually receive a foreclosure notice. This notice simply is just to inform you that the bank has initiated the foreclosure and scheduled the sale of your home.

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  4. Loss of Home — Once someone submits a winning bid at a home auction, or no one bids and the bank retains property rights, you’ll lose all rights to your home and will have to vacate.

Approximately one out of every 200 homes will be foreclosed upon. In 2013, one out of every 96 homes went into foreclosure. It’s a scary process and can be one of the most stressful times in a person’s or family’s life. However, it’s important to remember that a foreclosure isn’t the end of the world. It’s a rough setback to swallow, but if you’re careful and consult with the right people, you can get back on your feet.

You might even have an opportunity to buy back your foreclosed property.

If your home mortgage is at risk of foreclosure, you should contact a professional attorney immediately. Contact Dijulio Law Group today for real estate assistance in California.

Property Owning in California: What You Need to Know

Real Estate Laws

real estate lawThere are so many complications involved with real estate law. Each state has its own rules regarding property law, each county seemingly has areas that you can and cannot buy in, and it often feels like each individual home has some unique factor that changes the law altogether.

Property law, no matter how you look at it, is confusing to the untrained eye. That’s why it’s imperative that when dealing with any piece of property, whether it’s buying a house, renting an office space, or struggling in the foreclosure process, consulting with real estate lawyers should be your first move. No matter where you are looking to own property — this is important. California has plenty of specific rules that lawyers and real estate agents are privy to that not every property owner knows.

For current tenants living in apartments and townhomes in California, the disclosure by the state is extremely important. California law states that landlords must provide at least 60 days’ notice to their tenant in the event of an eviction. By doing this, the tenant should have enough time to gather their belongings, plan their next step, execute their plan or fight the eviction in court.

Notification is important regarding all aspects of property ownership. For instance, there are strict regulations in California that require proper notice — as well as ample time to pay — before any property is sold in a foreclosure sale.

And for anyone planning on purchasing a home, there is other information that is illegal to be withheld from you. According to California law, real estate agents are required to disclose any information pertaining to a death that might’ve offered on the property within at least three years before the sale. Again, a reason qualified real estate lawyers are so important.

Regarding vacant properties, according to Title 10 of the California Civil Procedures Code, any abandoned property is classified as “unclaimed property.” If the property remains unclaimed for over three years, it escheats to the California government.

Contact Dijulio Law Group today to speak to an experienced professional if you have any more questions regarding California real estate.

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