The most comprehensive source of information and links related to Austin foreclosures.
There are many types of foreclosures in the Austin area. Most foreclosures in the Austin area are sold at or below market value. The banks are not in the real estate business, and need to get the assets off their books, but at the same time, they need to recover as much money as possible. There are many sources of information on foreclosure listings, as this has become big business. Your best bet for finding these properties is to hire a Realtor that has experience in dealing with foreclosures.
Pre-forclosures are properties that have been listed for sale that are somewhere in the forclosure process or soon will be. Sometimes these properties can be very good deals. They are listed below fair market value in order to get a quick sale. Most of the time these will be what is known as a "short sale". The listing agent has negotiated with the lender to take less than what is owed on the property. When you place on offer on a short sale, the contract will be contigent upon lender approval. Sometimes it can take weeks before the bank finally agrees to accept your offer. Your Realtor will explain more about this process if you find a pre-forclosure and would like to make an offer. There are numerous websites that will sell you access to pre-forclosure information and the name of the trustee so that you can buy a property from the lender before it forecloses. The trustee will not speak to you on any terms. They are hired to handle the foreclosure and speaking to you about another person's loan would violate privacy laws. Not to mention, they do not own the property yet, and therefore have no right to sell it to you at any price. If you want to purchase a home before it forecloses you will have to contact the owner of the property, get them to accept and sign your offer and then get the bank to approve the short sale.
HUD properties are any home that was financed with an FHA loan that was foreclosed on. Because the Federal Goverment insures FHA loans, they take possesion after the lender forecloses on the property. You can Search for HUD properties here. They are also listed in the Austin MLS system. You will have to be pre-qualified with a lender before an agent can even show you a HUD property. You must go through a HUD registered brokerage to buy one. Check with your Realtor about finding a lender that specializes in HUD properties, as they can be very hard to close if you get the wrong lender and the process can be become very expensive. Hud gives you up to 45 days to close on the property. If you need more time every 15 day extension will cost you $375. Most of the time you will have to file at least one extension. This is usually due to the title company, in which case your Realtor should be able to get the fee waived. If it is becuase your lender or Realtor did not get something done on time, you will be responsible for the extension fee, so make sure you are dealing with an agent and lender that have experience with HUD properties.
REO or Real Estate Owned properties are owned by a bank and placed on the open market in order for the bank to try and recover as much of thier money as possible. The best way to find these properties is by contacting a Realtor, or simply searching the Austin MLS system for properties in your price range.
VA properties are owned by the Veteran's Administration. These were homes financed with a VA loan that went into foreclosure. You can Search for these properties here or through the MLS system.
We hope this information on Austin foreclosures is helpful and provides you enough information to start your search for a foreclosed property in Austin.