Alabama foreclosure listings offer you the cost effective way to own a residential or commercial property. These properties are foreclosed either by banks or by government due to inability of the homeowner to repay the home equity loans or property tax. They are sold through the process of auction. The basic aim of auction here is to recover the unpaid loan amount or tax with the cost of foreclosure. That is the reason why these properties are cheaper and considered as good real estate investments. In this article we will focus on the process of foreclosure in Alabama and the advantages of buying them.

Power of sale is an integral clause of loan against property approval in Alabama. This clause enables lender or the equal lien holder of the property to foreclose it in case of default and sell it through the process of auction. During the repayment tenure, the title of the property remains with the public trustee. The lender has to convince and give sufficient document to the trustee to prove that he has given time and chance to the borrower for repayment. If satisfied, the trustee issues foreclosure sale notice in all local dailies. All details related to the auction sale are given in the sale notice. The auction takes place in all working days of a week in the presence of Sheriff.

The foreclosure process in Alabama generally takes 60-90 days. The time period depends upon the redemption of the loan amount. However there are several stages where the process of auction can be interrupted. The borrower can repay the default amount and foreclosure cost before the date auction to stop it. In Alabama, post foreclosure redemption right is also legal. It enables the property owner to reclaim the property with in 12 months of auction by repaying the whole amount. These things need to be taken care of while you are making real estate investments in foreclosed properties.

However, there are several advantages of buying properties from Alabama foreclosure listings. They cost around $ 189,539 which is 15% lower compared to market price of fresh properties. With little investment on renovation you can add equity in it and sell it at a higher price. You can also use these properties for renting and second homes. All information related to these properties can be available from real estate websites.

There is no doubt that the returns available from Alabama foreclosures are quite high. This is the only reason why investors from across the nation choose the state for their participation in real estate market. However, the question, which remains in the mind of the first time investors, is that where can you get foreclosed property at the cheapest rate. According to most real estate experts, the most affordable properties are available in government foreclosed auctions.

Why Alabama government is desperate for foreclosure sale?

The reason behind the government auctions is that the government wants to get rid of most of these properties, which they have recovered from tax defaulters. Since the amount, which contributes to the overall taxes, is quite low, they are ready to dispose the property at the best available rate. Again, they also avoid paying the maintenance charges that come along with keeping these properties. The presence of too many foreclosures also affects the overall real estate market of the state, which is what the state officials do not wish for. So, they look forward to clear the market of these foreclosures at the best available rate.

How Government Auctions dispose properties faster?

Sales at government auctions are exposed to a larger volume of the public. This is what helps in disposing of the foreclosed properties faster. The government is able to recover money faster, when the properties are sold quickly. Their auctioneers have the infrastructure to deal with such sales, which banks and other private lenders do not have. This is the reason why they also turn to government auctions for selling off their properties.

Locate and inspect foreclosed homes

Even though the property is available at cheap prices, you should first locate the property before making an investment. Once you have located a property, which is suitable for you, do not just jump at bidding for it. Instead, inspect the condition of the house first and see what extent of repairs you will have to carry out on it and what it is going to cost you. Apart from this, you should find out the market value of the Alabama foreclosures for sale also, so that you know what the upper limit of your bid for them should be.

Tips on Extending Offers

• Banks usually do not entertain letters of intent or interest with regard to a Pell City foreclosures or any similar property. It is advisable to thus approach the bank with a formal letter of offer. This will be in favor of the interested buyer.




• All banks demand letters of pre-approval on loan purchases, including for those not dependent on external financing/loan. Such letters of pre-approval from the lenders must comprise the loan-type and details about pre-approving the buyer, like a credit check, income verification, source of down payment and employment status.




• In case of cash offers for foreclosure, banks need Verification of Funds, including statement of balance from the bank, and the account holder’s history with the bank.




• Be precise and straightforward in making your offer to the bank. Avoid leaving gray areas for that will only lead to delays in responses/procedures. In offering to pay for the buyers’ closing costs, check whether your quoted amount is payable under the buyer’s loan program. More often than not, the buyer will not be obligated to return the difference.




• Banks usually follow standard addendums. It is imperative that you read and correctly follow the terms before agreeing to them.




• It will be in your favor to inspect the property thoroughly before offering the bank a price. Often if the property does not adhere to a certain standard, chances are that a loan for it may be declined.




• It is possible that the bank is already aware of the condition of the property and has quoted a price accordingly. However, you may wish to prepare your own list and share it with the bank, who are in no obligation however to look at it. The bank usually out-sources such services, but it doesn’t hurt to do your own homework.




• A bank usually does not make any warranties on foreclosures or similar properties.




• Unlike a new home buyer, a bank representative has no emotional attachment with any of the numerous properties he may be handling at a time. Given that, it is possible that you will get a response for your offer on Pell City foreclosures for sale within 3-5 business days or sometimes it may take longer.