The buzz word in the Real Estate Industry seems to be “foreclosure” now-a-days. The thought is that one man’s (the banks) loss is another mans (you) gain! This can be true however with all high reward investments, there always come great risks. The reality of foreclosure investing is far different than what many people have seen or heard from those infomercials ore read about in foreclosure books.  

A Foreclosure is the equitable proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property due to the owner’s failure to comply with an agreement between the lender and borrower called a “mortgage” or a “deed of trust”. Foreclosure can happen anytime after a default on the mortgage.  

To purchase a foreclosure property in Delaware one must know and understand the foreclosure process. There are three steps to the foreclosure process which can make it a lengthy timeframe. A home first goes into the “Pre-Foreclosure” stage which happens when an owner is in default on their mortgage. This is also known as the time when the homeowner gets its first foreclosure notice. The second step in the process is the “Foreclosure Auctions” or better known as “Sheriff Sales”. In Delaware on every 2nd Tuesday of the month all homes that have gone through the process are auctioned off. Lists of homes are published one month prior to the auction and can be purchased on the 5th floor of the New Castle County building at 800 French Street in the City of Wilmington. During this auction the foreclosing lender will bid up to the unpaid balance, plus all penalties and fees for the defaulted loan. At this stage it is possible for another buyer to purchase the home, but they must bid over what the bank’s interest in the property is. The third stage of the foreclosure process is when the home becomes “REO” or Real Estate Owned. These are properties that the lender owns from the prior foreclosure auction. These properties are the homes that we market. Click here to see all the foreclosures currently marketed by the Chubb Realty Group. 

Purchasing a Delaware Foreclosure property is a lot harder then just coming in and offering the bank $100,000 less then its comparable market value. As a buyer, you must always remember that there is another person on the banks end working their hardest to get the highest price (salary incentives depend on it!). The first thing you must expect is that you will have to close on the property in 30 to 45 days and that no bank will accept a contingency offer. Buyers of foreclosure properties must also be aware as all homes are sold in “as-is” condition and no home has a sellers disclosure. These factors put more responsibility in the due diligence process for the buyer and buyers agent. The buyer is able to do a home inspection, however this report is for informational purposes only.  

I have been selling real estate since 1989 and have sold many foreclosures in Delaware. My expertise also rests with dealing with these banks on a daily basis as one of the preferred brokers that offer Delaware foreclosures to the public. I know the ins and outs of the system and am the best and most experience real estate agent to represent you in the highly rewarding, but risky business of foreclosures. Give me a call at 302-478-6425 and lets put together your game plan!