Foreclosures Can Make New York City Real Estate Affordable
You will not want to purchase a home in New York City until you have looked at NYC foreclosures. This is due to the fact that NYC foreclosures oftentimes provide the best deals on real estate in all of New York. In fact, NYC foreclosures are such a bargain that they can sometimes turn the notion on its head that New York real estate is altogether unaffordable. So if you have reason to move to New York City, or if you would like to move to New York City but are dissuaded from it because of high prices, you should check out NYC foreclosures before deciding against moving to New York City. The following article will provide some insight into foreclosures so that you have a working knowledge of what we are talking about.
A general discussion of foreclosures is a good starting point. Foreclosures occur when a home owner fails to make mortgage payments. Generally the lender warns the home owner that unless he makes his home payments which are in arrear, the lender will take the house back – foreclose upon it. Once the home owner receives this warning, the home is in the pre-foreclosure stage of the foreclosure process. This provides the homeowner an opportunity to either clear up back payments or attempt to sell the home personally.
Once the bank proceeds to take the home back, it will attempt to sell the home at an auction. This provides another opportunity to purchase the house at a discounted rate. Oftentimes, homes sold at auction are sold for up to 50% less than the fair market value of the home. This phase of the foreclosure process is perhaps the most opportunistic time to purchase a NYC foreclosure.
If the home does not sell at auction, the sale moves into the final stage of the foreclosure process. This is when the bank has taken the home back and either chosen not to auction it or failed to sell it at auction. During this phase of the foreclosure process, you have another great opportunity to make a lucrative investment because the bank really has no interest in keeping the home for itself. There are several advantages to purchasing a NYC foreclosure during this phase of the foreclosure process. First of all, the lender is generally the senior lien holder so any home bought in this final stage of the foreclosure process is usually free and clear of any liens. Moreover, it is most often the case that the lender has already paid off any property taxes, which can save you a substantial sum of money.
While homes purchased from the lender during the final stage of foreclosure are generally priced somewhat under the fair market value, they are usually only discounted by about 10%. Although this is still a good discount, you can find the best deals at auctions. But with this lower discount comes the piece of mind which follows having the home inspected before making an offer.
Buying NYC foreclosures can make living in New York City a reality.