The Basics of Land Foreclosures
Land foreclosures, as with residential and commercial foreclosures, also occurred by non-payment of mortgage loans. Financing to buy the land property is by means of primary security instruments like mortgage or deed, depending on the rules of the state where the property is located.
If the owner of the land was not able to meet his obligation to pay his monthly mortgage, then the property becomes foreclosure.
Where to Find Foreclosed Land Properties?
The foreclosed land will then be auctioned off or the lender would opt to hold on the property. Investors who are looking for cheap deals flocked to foreclosure auctions hoping to acquire land properties way below their market value.
Land foreclosures can be found the same way that you search for residential or commercial properties. However, there are some differences in procedures that buyers should be aware of. Information on foreclosed land properties is available through lenders and banks or on the Internet.
Potential buyers should do some research before buying any land foreclosures as deals can sometimes be tricky, with most of them involving legal issues like overdue taxes.
Tax related issue is the main pitfall that buyers should be aware of if they plan to buy foreclosed land properties. For example, you have found the perfect land property to buy at a price that fits your budget. However, being a smart buyer you would come to think why such a good property would be sold for a low price.
Then you gather some information from the county court house where the foreclosed land property is scheduled to be auctioned. This kind of information can be accessed by the public. It is then that you found out that the land you had set your eyes on has property tax problem.
Buying land foreclosures is one of the smartest thing that any buyer can do. Just be aware of the risks involved to avoid turning your investment into lemon.
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Mortgage Rates
| National Overnight Averages | TODAY | +/- | Last Week |
|---|---|---|---|
| 3/1 Year ARM | 3.5% |  |
3.51% |
| 1 Year ARM | 3.37% | |
3.4% |
| 30 Year Fixed Mortgage | 4.99% | |
5.03% |
| 15 Year Fixed Mortgage | 4.51% |  |
4.51% |
| 5/1 Year ARM | 3.53% | |
3.55% |
