As you’re looking through Ellicott City homes for sale, you may see some listed as foreclosures.
So what are foreclosures, and should you buy one?
What is a Foreclosure?
A foreclosure is a home that’s been through a legal process after its owner has been unable to make payments on it. It’s not a home in which the owner misses one payment – usually, foreclosure doesn’t take place until the owner misses several payments.
It’s like a repossession. When the person who borrowed money from a lender can’t make his or her payments, the lender takes possession of the house.
The borrower has to then move out of the home so the lender can sell it. The lender wants to sell the home so it can recoup some of the money it lost.
How Does Foreclosure Work?
After several months (usually three to six) of nonpayment, the lender will file a “Notice of Default” with the county recorder. The notice lets the borrower know that he or she is at-risk of losing the home.
The borrower can try to settle his or her debt with the lender.
If the borrower doesn’t settle the debt, the lender will most likely schedule a foreclosure auction to try to sell the home to someone else. But if nobody buys it, the lender becomes the owner – and it’s considered a real estate owned property, or REO.
Should You Buy a Foreclosure?
Sometimes buying a foreclosure means getting a great deal on a house you couldn’t otherwise afford. That’s because the lender wants to sell it to recoup its money – not necessarily to make a profit.
However, if you’re interested in buying a foreclosure, remember that the seller was likely out of money when the bank took the property back. That may mean that it’s in poor condition because the owner didn’t have money for maintenance, upkeep or repairs.
Most foreclosures are sold as-is, which means the lender won’t pay to fix anything. You can either take it or leave it.
Are You Buying a Home in Ellicott City?
If you’re ready to buy a home for sale in Ellicott City, we can help you find the right one.
Call us at 410-465-5822 to tell us what you want from your next home or to schedule a tour in a home you’ve seen online.
Use these links to check out the hottest listings:
- Ellicott City homes for sale
- Columbia homes for sale
- Catonsville homes for sale
- Pikesville homes for sale
- Owings Mills homes for sale

2530 Kensington Gardens 301 Ellicott City, Maryland
3 Beds 3 Baths 2,880 SqFt
Listing courtesy of Coldwell Banker Realty

11920 Frederick Road Ellicott City, Maryland
3 Beds 2 Baths 1,498 SqFt 0.250 Acres
Listing courtesy of Keller Williams Realty Centre

5341 Kerger Road Ellicott City, Maryland
5 Beds 4 Baths 3,982 SqFt 0.330 Acres
Listing courtesy of Excel Realty Corp.

8800 Bosley Road 307 Ellicott City, Maryland
3 Beds 2 Baths 1,890 SqFt
Listing courtesy of Berkshire Hathaway HomeServices PenFed Realty

8118 Calla Lilly Drive 107 Ellicott City, Maryland
3 Beds 4 Baths 2,910 SqFt
Listing courtesy of Cummings & Co. Realtors

2874 Thornbrook Road Ellicott City, Maryland
4 Beds 4 Baths 3,896 SqFt 0.330 Acres
Listing courtesy of RE/MAX Advantage Realty

3118 Priscillas View Ellicott City, Maryland
3 Beds 3 Baths 1,552 SqFt 0.020 Acres
Listing courtesy of RE/MAX Executive

3112 Bunker Drive Ellicott City, Maryland
5 Beds 5 Baths 4,606 SqFt 0.350 Acres
Listing courtesy of Long & Foster Real Estate, Inc.

3784 College Avenue A1 Ellicott City, Maryland
3 Beds 4 Baths 2,393 SqFt 0.270 Acres
Listing courtesy of Elevate Real Estate Brokerage

2806 Greenway Drive Ellicott City, Maryland
4 Beds 3 Baths 2,110 SqFt 0.460 Acres
Listing courtesy of Douglas Realty LLC

8613 Falls Run Road G Ellicott City, Maryland
3 Beds 2 Baths 1,083 SqFt
Listing courtesy of RE/MAX Specialists

2616 Queensland Drive Ellicott City, Maryland
4 Beds 5 Baths 3,075 SqFt 0.020 Acres
Listing courtesy of Long & Foster Real Estate, Inc.

2750 Thornbrook Road Ellicott City, Maryland
4 Beds 3 Baths 3,753 SqFt 0.320 Acres
Listing courtesy of Keller Williams Lucido Agency

10212 Clubhouse Court Ellicott City, Maryland
4 Beds 3 Baths 3,228 SqFt 0.320 Acres
Listing courtesy of Northrop Realty, A Long & Foster Company

8511 Coltrane Court 202 Ellicott City, Maryland
3 Beds 2 Baths 1,800 SqFt
Listing courtesy of Keller Williams Lucido Agency
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