2. Check the Property Taxes
In many cases, the homeowner who suffered the foreclosure was not aware they were eligible to file with the county for a Homestead Exemption. This exemption is a 60% discount in the property tax rate, and only owner occupants are eligible to file. Secondarily, investors cannot claim the exemption, so former rental or other investment property will have abnormally high property taxes. If one of these scenarios applies to the property you want to purchase, you will need to be able to qualify for the loan with the additional escrows that will be required during the first two calendar years of ownership. In some cases it can add $50-100 to your monthly payment. This may disqualify you from purchasing certain foreclosure properties. Check with your Real Estate Agent and Loan Officer to be sure.
This is the second installment, so stay tuned as I continue to bring you information on purchasing a forclosed property in Metro Atlanta.
If you are thinking of buying or selling a home, contact Andre Allen, REALTOR® with Keller Williams Realty - Atlanta Partners servicing the real estate needs of Metro Atlanta, GA. Contact me at (678) 252-2959 or AndreAllen@kw.com.
Comments(0)