Foreclosed Homes: The Ohio Home Foreclosure Process
Are you thinking about buying a foreclosure in Dayton Ohio? Before you jump right into a foreclosed home you should understand the foreclosure process. The foreclosure process is best described by putting it into 3 simple steps.
Stage 1 of the foreclosure process: Defaulting On Your Mortgage
The first stage of the foreclosure process is generally referred to as the “Pre-Foreclosure” stage. In the “Pre-Foreclosure” stage, the homeowner has already defaulted on their home loan (mortgage payments), but the actual foreclosure has yet to happen. This is the first opportunity you have to buy a foreclosed home in Dayton Ohio. You are probably asking yourself, “How will I know what homes in the Dayton / Miami Valley area are in the ‘Pre Foreclosure’ stage?” The answer is simple – you should contact your Realtor and inquire about the Dayton Ohio foreclosure list. You can also visit your local Sheriff’s office – in this case the Montgomery County Ohio Sheriff’s Office – where all of the defaults are registered. Now that you have a list of foreclosed homes in Dayton Ohio, you can have your Realtor submit an offer on the foreclosed home directly to the defaulting homeowner. An important note to keep in mind: You have about 90 days to act after the default notice is posted and another 21 to 25 days after auction sale date is published.
Stage 2 of the foreclosure process: Sheriff’s Sale (Public Auction)
If the property in question does not sell in “Pre-Foreclosure” and the homeowner actually defaults on the mortgage, the home goes to public auction. During the “Public Auction” stage of the foreclosure process is where you will find the best deals on foreclosed homes in Dayton Ohio. Keep in mind that the “Public Auction” phase of the foreclosure process can be riddled with difficulties.
- Auctions can be canceled at the last moment because the foreclosed home has been sold or the mortgage payments have been reworked.
- Court- appointed trustees will ONLY except cash or cashiers’ check.
- There’s barely anytime to arrange an inspection on the foreclosed home. This means the bidders have no real idea of the foreclosed home’s current condition.
- Foreclosed homes are sold “as is,” without warranties. Sellers are NOT mandated to disclose problems with the home or property in question.
Keep in mind, if the original homeowner had secured a loan through The U.S. Department of Housing and Urban Development (HUD), then (HUD) would secure ownership of the foreclosed home and either list & sell it through a real estate agent or auction it off through the internet.
Stage 3 of the foreclosure process: REOs (Real Estate Owned)
Last Chance – if the Dayton Ohio foreclosure that you’re interested in did not sell at auction, it is now returned to the lender where it is re-named and now referred to as a “Real Estate Owned Property.” Lenders are not fond of REOs. The longer an unoccupied foreclosed home sits on the market, the more it costs the lender. The lender is then obligated to pay “up-keep” expenses or be forced to pay stiff fines by the City of Dayton.
Investors Beware – lenders generally will not deal with investors. Instead, they list & sell the property through a local real estate agent. Although this is the best opportunity for you to buy a foreclosure in Dayton Ohio, it should be noted that lenders are not in the business of losing money. What I’m saying is this – Although this might be your best opportunity to get that foreclosed home you’ve been dreaming about, the deal may not be the best.
