Q. What can you tell me about buying a foreclosure?
A. Buying a foreclosure can be a very good way to get a home for as little as 70%-80% of its market value. But there are many potential pitfalls to be aware of.
When a homeowner defaults on their payments, usually after 90 days, the lender will send them a notice of foreclosure. The case will then proceed through the courts and, if there is no resolution with the homeowner, a final judgment will be issued and the home will be sold at a Delaware public auction.
The idea is to buy one of these homes before it goes to auction because very savvy buyers attend these auctions and, because you have to pay in full with a cashier's check, you better know what you're doing. It's a good idea to attend a few of these auctions, just as an observer.
The best way to buy one of these homes is to contact the owner before things go too far. You can get a list of impending foreclosures from the county courthouse. The potential problem here is that, once the homeowner is committed to the foreclosure process, they'll usually try to stay in the home as long as possible because they are not paying. If you intend to finance the purchase you may not be left with much time to arrange a loan before it goes to auction.
There is much to know when buying foreclosures and there are many companies that will gladly sell you their "secrets" to buying them. Most of them are pie-in-the-sky schemes. If you're seriously diligent, you can learn all you need to know through public sources.
I'd be delighted to discuss this further. (302)398-3757 Please give me a call and I'll be glad to help in any way I can. Also Feel Free To Visit The Tom Davis Realtor Website to search homes for sale at: www.freehomesearch.dreamstation.com I can help you find some Delaware Home Deals!
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