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Updated about 4 years ago,
Buying My First Foreclosure .... CONCERNS
I am looking into buying a Foreclosure to do as a potential BRRRR deal. I have a few reservations that i wanted to see if anyone on BP could shed some light on. I am looking into these mainly because the inventory in my market is extremely low i have been struggling to find deals. I figure that the requirement of having to have cash available will create a barrier to entry that will lower the competition for these foreclosed properties. I have listed out my concerns below and would love to hear some insight and opinions of others.
1 - One of the largest concerns that i have is buying a property that has multiple liens on the title. Is there a way to prevent this? Are all secondary leans required to be disclosed at auctions or is this something that needs to be researched at the court house prior?
2 - A lot of foreclosed properties are occupied. The risk here is fairly high because you are not able to review the property to understand the extent of work that it will need. On top of not being able to review the conditions of the inside there is also the chance that the occupant will refuse to leave leaving me responsible for evicting them it would think. Is there a way to minimize these risks?
3 - My final concern is finding / narrowing down the type of foreclosure that i should look into. I have looked at multiple different websites that list foreclosure but most require you to pay a subscription. Is there a website like HUD or Homepath that is more reputable that others? Do i have to go through a real estate agent to deal with the REO agents? I have a agent but he does not have much experience in foreclosures.