New Orleans Foreclosed Real Estate
Buying a foreclosed home in New Orleans is an excellent way to locate a new orleans home or investment property. Forclosures occur when an investor or homeowner is no longer able to pay his mortgage and/or property taxes. After a specified period of time has passed without payment or a suitable agreement between the lender and the homeowner, the owner of the mortgage takes possession in a process called a foreclosure.
Often times investors get involved prior to the actual act of foreclosure and negotiate to purchase the property in a process called a short sale. Essentially the person looking to buy the property would negotiate directly with the bank in order to purchase the property for potentially less than the bank is owed.
There are a number of reasons why a bank may choose to go through with a sale that pays them less than 100% of what they are owed:
- The property could be underwater, which means that the amount owed by the borrower is actually more than the amount that the property would sell for on the open market.
- The bank or lender could decide that carrying costs— insurance, maintenance, and potential depreciation will cost more than the amount they will lose by settling for less than the amount owed.
- The bank or lender may not have a property management division and may simply be uncomfortable maintaining and eventually selling the property.
In New Orleans foreclosed and homes that are on the verge of being foreclosed present a unique opportunity to potential homeowners and investors to secure a deal on a home or investment property. Contact a Korman Gerrity Realtor NOW to start your search.