Durant, Oklahoma is a thriving small town community with a lot to offer. There are plenty of job opportunities, great schools, and a flourishing art scene in downtown Durant. Over the years, people in Oklahoma have begun to realize that Durant is the perfect place to call home, at an affordable price.
The median home value in Durant is just under $100,000 which makes it one of the most affordable and budget-friendly cities within Oklahoma. But if you're willing to purchase a foreclosed home or fixer upper property, you’ll likely find yourself getting a great deal well below market value. However, it helps to educate yourself, so you have realistic expectations.
In this post, you'll discover why you should consider buying a foreclosed property in Durant, and learn whether purchasing a foreclosed home is right for your family.
What is a foreclosure home?
When a homeowner doesn't pay their mortgage, the mortgage lender can reclaim ownership of the property. Each state has different foreclosure laws, but generally, the process happens in four steps.
First, the homeowner fails to make mortgage payments for an extended period which can occur because of hardships, such as loss of a job, divorce, or a family death. Occasionally, a homeowner will stop paying mortgage payments because they owe more to their lender on the house than the property's actual value. When the homeowner fails to pay their mortgage on time, they don't meet their loan terms, and the mortgage lender has a right to cancel the loan and retain the property.
Second, the lender will post a public notice with the County Recorder's Office. This public notice is a warning of foreclosure to the homeowner and officially begins the eviction and foreclosure process.
Third, the homeowner enters pre-foreclosure. The pre-foreclosure period usually lasts anywhere from a month to four months, but in some states, it can last a lot longer. This is the opportunity for the homeowner to catch up on their mortgage payments and fees, or sell the home in a short sale by working out terms with the lender. If both these options fail to occur, the foreclosure process continues.
Fourth, there's a foreclosure auction. During an auction, a home buyer has to bring all cash to purchase the foreclosure property. As most people cannot afford to pay all cash for a home, lenders often opt for a deed in lieu of foreclosure. Occasionally, no one buys the home, and it becomes a bank-owned property. Buyers can purchase a bank-owned property through a real estate agent or at an asset liquidation auction.
Pros and cons of buying a foreclosure
There are both benefits and downsides to purchasing foreclosure properties. Here are some common reasons why you should consider buying a foreclosed property in Durant, OK:
· You can purchase a home below market price
· Banks offer REO (Real-Estate-Owned) properties at a discount
· Homeowners can make repairs and have instant equity
Here are some reasons why buying foreclosed properties might not be right for your family:
· You can’t always inspect a home before buying it in cash at an auction
· Foreclosures often need repair, since homeowners stopped paying for maintenance of the property
· Sometimes there are liens on the property, so you could potentially owe money after purchasing the foreclosed home
Get in touch with a foreclosure specialist in Durant, OK!
Are you wondering if purchasing a foreclosed property in Durant is right for you? Get in contact with a local real estate professional! I’ll take the time to learn about you and your family, and help you determine whether you should purchase a home traditionally, or whether a foreclosed property will meet your needs.
Give us a call at (580) 877-SOLD or contact me through my website today!