Buying A Foreclosure Guide
What you need to know when buying a foreclosure.
So you're looking for the perfect bargain when buying a foreclosure. The process will not be easy. Buying a foreclosure can be very tricky at times. However when you do your home work and follow the these steps when buying a foreclosure, you can purchase a home for a great deal.
1. Understand the Foreclosure Process
When buying a home it is important to know some terms. A foreclosure is a process when the lender is allowed to recover the amount owned on a defaulted loan by selling or taking ownership of the property. The process begins when a borrower defaults on mortgage payments and the bank files a public default notice.
2. When Buying a Foreclosure Understand the Different Stages
There are different stages when buying a home in foreclosure. Each stage offers unique advantages and disadvantages. What is the difference between buying a Short Sale and a Foreclosure?
3. Find Foreclosure Properties
The easiest way to find foreclosures is to talk with a real estate agent. Melissa Furman will send you up to date homes for sale in your area of choice. Also you can look for public notices of default in the newspaper.
4. Check the Properties Leins
When buying a foreclosure there may be other liens on the property. A lien is a legal claim on a piece of property to secure a debt or payment. Be aware of all liens on the property as this may drive up the purchase price. Examples of liens are unpaid taxes, home improvements, and mortgage lien.
5. Calculate the Math
Calculate the amount you will have to sink in when buying a foreclosure. Consider necessary renovations, upgrades, and other expenses.
6. Receive Financing
Secure the money in advance, whether it be cash, a line of credit, resources from advance, etc. Sellers want to work with serious buyers. Without securing financing upfront you can miss out on an opportunity quickly.
7. Make an Offer
It's that time when buying a foreclosure to make an offer. Contact Melissa Furman for more information.
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