Foreclosures and Home Improvement

Usually, a person or company files for bankruptcy when they can no longer afford to pay off their credit line. There are least seven different kinds of bankruptcies. The most common types are Chapter 13 and Chapter 7 bankruptcies; they are for individuals. Chapter 11 and Chapter 14 bankruptcies are most common among companies or organizations.

Houses that are in a pre-foreclosure state can be rented out to tenants and tenants can still continue living them. However, it is not always ethical to rent out units of a house that is in a pre-foreclosure state if you do not let the potential tenant know what they are getting into. People can rent out properties for extra money as well. If you are a tenant in a house that is in a pre-foreclosure state, you can still stay in it as long as you are not related to the borrower and signed a lease before the foreclosure went into effect.

Tax liens are usually placed on a property by the government, usually for personal or real estate properties. Tax liens prevent a homeowner from selling a property until that persons taxes have been updated. Tax liens also prohibit the sale of a homeowner’s personal items, such as a vehicle. The government usually places tax liens on a person if they do not pay their property taxes on time.

Foreclosures usually sell for lower prices than homes that are put up for sale for the regular market price. To really profit from a property, you need to develop a certain amount of equity or hold it for a long period of time. A lower priced home can fetch a high amount of equity if you spend time fixing it up or adding things on to it.