Foreclosure Questions and Answers

This foreclosure information can help answer some of the questions on buying a foreclosed or bank owned home in Las Vegas. This may answer some of your questions about the process of buying a foreclosed or bank owned homes in Las Vegas.

There are many good foreclosure homes in the Las Vegas market due to the staggering amount of foreclosed homes.

Question: What is a foreclosure?

Answer: A foreclosure is the process when the mortgage lender or bank can repossess the house in order to recover money owed on a home mortgage loan that is in default. When a homeowner does not pay their mortgage payment for about three months, and the mortgage lender files a public notice of default with the County Recorder’s Office. The homeowner has period of time in which they can bring their account up to date.

If the homeowner is not able to bring the mortgage payments current, then the mortgage lender moves to the next step which is a notice of trustee sale. A trustee sale can be held on county courthouse steps as a public auction. If the home does not sell to the highest bidder at the public auction, then it goes back to the mortgage lender and becomes bank owned property. People can lose their homes due to job loss, health problems or divorce.

Question: How does a person find a foreclosure or bank owned home?

Answer:If you are interested in receiving detailed listings of foreclosed Las Vegas homes emailed to you in the price range with specific requests just send your request custom search request. for our FREE foreclosure lists. There are thousands of foreclosed bank owned homes in the Las Vegas MLS listings currently available in all areas of the Las Vegas valley.

You do not have to pay a 'membership fee' advertised on some websites to get these detailed foreclosure listings. You can contact major banks and ask to see their properties for sale. Many banks will refuse to consider an offer from an unrepresented buyer. Using an experienced realtor can help you avoid the pitfalls, while taking advantage of the opportunities the foreclosures in the Las Vegas real estate market have to offer.

If you are considering a trustee sale auction to purchase a foreclosed home, then those listings will be found in the newspaper on under public notices. These require all cash bids with the bidding starting at the amount being foreclosed on. The buyer must accept a risky venture since there may not be an inspection allowed and it may have a defiect title. Definitely buyer beware.

Question: Can foreclosure homes be previewed inside before making an offer?

Answer: Homes in the MLS listings that are bank-owned can be toured just like other homes. Foreclosed bank owned homes have lock boxes on them from the realtor that is representing the bank. The buyer is wise to have a realtor representing him and keep in mind that the banks realtor is looking out for the banks' interests not the buyers!

Many of the Las Vegas foreclosures are in beautiful condition but keep in mind that foreclosed homes are sold as-is so you can not go back to the seller later for repairs. The smart buyer will get a professional home inspection done to be aware of any issue before closing. There are foreclosed homes that have been neglected or damaged with even deeper discounts making the potential for finding a 'diamond in the rough' a real possibility.

Question: How do you get financing for a foreclosure?

Answer: If you are looking at a bank owned foreclosed home, then yes it is possible to get financing. Mortgage lenders will give you a prequalification letter showing you have been prequalified with them and how much of a home loan they will give you. Many banks will not accept an offer on a bank owned home unless you submit a prequalification letter with the offer.

A prequalification is only a rough guess on how much you can afford with no guarantee your loan would be approved. A preapproval from your lender is more in depth, it will mean your mortgage lender has already checked your financial position and they will be approving you for a set amount of loan.

If you are going for an FHA insured loan, then make sure of the building requirements allowed if there is heavy damage on a foreclosure property. One reason there are few bidders for foreclosures at trustee sales is that it is a cash sale without financing. You need to show up with cashier's check and ready to pay.

Question: Where can you find out about HUD repossessed homes or VA foreclosures?

Answer: When a home was insured by HUD goes into foreclosure, then the U.S. Department of Housing and Urban Development acquires the property from the lender who foreclosed on the mortgage.

Only a licensed real estate broker can bid on a HUD foreclosure. HUD will pay the broker's commission up to 6 percent of the sales price. Remember that HUD and VA forecloses are sold 'as is' and you should be prepared to make any and all repairs as the seller is not responsible. Down payments vary depending on whether the property is eligible for FHA insurance.

Feel free to ask us any questions and get the answers you need. Michael Ray is an experienced Las Vegas Real Estate Agent you can call today at (702) 501-1508.

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