3 Tips on How to Buy Foreclosed Properties
Buying a foreclosed home can be quite a headache if you’re new to this practice. But it provides home buyers an appealing opportunity of buying a home at less its market price! If you’re one of those who would like to buy a foreclosed home, but are unsure how to go about it, here are some tips on how to make it go as easy as possible.
Buy Directly from the Bank / Lender
Buying directly from the lender is one of the safest ways to purchase a foreclosed property. Because the home is already foreclosed by the bank, you do not have to worry about evicting occupants, paying for outstanding property taxes, or determining whether or not there are liens on the property. Also, you are sometimes offered additional discounts and incentives such as low down payments or low mortgage costs.
The thing to remember when dealing with banks is this may take a longer time than standard real estate transactions. There are more people involved on the lender’s side, and they may have more requirements, so expect things to move at a slower pace.
You can also deal with real estate agents that work together with banks. These are brokers hired by banks to handle their foreclosed properties in the market.
Schedule a Home Visit
Considering that the bank has had no first-hand knowledge about the home prior to the acquisition, there may be no record of repair or maintenance history. Unlike a typical sale where the seller knows all about the home and its defects, the bank is unable to verify the home’s condition and complete a Seller’s Disclosure. It is best to have a licensed home inspector go over the property and evaluate its condition. That way, you can be prepared financial-wise to take on additional expenses for repairs, if any are needed. Remember, the house may have been left vacant for a long time.
Don’t just limit your visit to the property itself, but also include the neighborhood and assess its appeal both day and night.
Get the Latest Title Information
As is standard with all real estate transactions, take special care in performing a title search. The importance of doing so is stressed all the more in buying foreclosed properties because of the unique process of how the property is transferred through foreclosure. You don’t want to be caught by surprise upon closing by discovering that there are liens on the title. Even if you buy directly from the banks who might have looked into this already, it always pays to be careful.
You might also want to consider working with a real estate professional that is experienced in dealing with REO and foreclosed properties.
If you think buying a foreclosed home is for you, start your shopping and browse through a list of foreclosed properties in your area for free: http://rebeccajohnson-realtor.com/foreclosures.php
Rebecca Johnson, Realtor
Freedom Realtors of Middle GA
478-320-1186
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