Buyer Beware: Sometimes A Foreclosure Isn't Really A Foreclosure

By
Real Estate Agent with Price & Company Realty

Smart buyers know that there are numerous ways to purchase foreclosed real estate in Myrtle Beach. Each option differs greatly in how you'll get the best deal. Buying a foreclosure on the courthouse steps is radically different from using a Myrtle Beach Realtor to help get you the best deal on a foreclosure listing in our MLS.

What many people don't know is that there is an increasing number of Myrtle Beach real estate listings right now that are being advertised to the public as foreclosures - but they aren't really foreclosures.

Well... let me rephrase. The property WAS foreclosed on. But the seller purchased the property as a foreclosure and is trying to sell it to you - obviously at a higher price. The property might still be a good deal - but not nearly as good a deal as when he bought it!

How can you avoid this?

That's easy. Almost all lenders will list their foreclosed properties with a real estate company on the MLS. And South Carolina real estate law says that the real estate company must identify itself in all advertising. So... if you see a foreclosure listing that doesn't include the name of a real estate company... walk away.

Once you've verified that the property is listed with a real estate company, should you call them? Not necessarily! Always remember Real Estate Rule Number Two: Who's Got Your Back? (Real Estate Rule Number One is Location! Location! Location!)

Real Estate Rule Number Two is is very important, especially with foreclosures. Many buyers are shocked at the scope of paperwork thrown at them by banks and other entities like Fannie Mae and Freddie Mac. A qualified foreclosure specialist can help navigate through the quagmire of foreclosures and help you find the best deal - and then help you negotiate with the lender for an even better deal! This will give you an edge over other foreclosure buyers. And an edge is exactly what you need.

In my next blog post, we'll talk about more strategies to increase your edge over other buyers.

Comments (1)

Chuck Gollay
Exit Realty Paramount - Traverse City, MI

Richard,

Interesting post!  We see flips here in northern Michigan, too, but I haven't seen re-sellers marketing them as foreclosures. 

i'd love to see your strategies for increasing your edge over other buyers. 

Apr 24, 2010 06:27 AM