The biggest reason people start looking at purchasing foreclosed properties is for the potential profit involved. Some look for foreclosures as a pure investment home and never plan on living in the home while others do it for their next home purchase and just want a good deal. There are over a million homes in the United States in some stage of the foreclosure process so there are lots of deals to be had out there. Here are a few steps to take when looking to purchase a foreclosed home:
1. Look at REOs for your first deal. REOs are properties that the banks have already foreclosed on and are now looking to get rid of. One of the benefits of buying an REO property is that you have the chance to inspect the property where with foreclosure auctions there is no time for inspection. Also, REO property transactions work a lot like a regular transaction where you can obtain financing as opposed to the auctions where you have to have the cash for the full purchase price the day of the auction.
2. Arrange financing before submitting offers. You have to remember that when you are shopping for these great deals on properties other people are too. You need to make sure you have everything in line as far as your finances so your offer looks for attractive to the bank or whoever owns the property you are looking at.
3. Find help from an experienced professional. Finding a trained buyers agent to help you through the process for your first couple of deals will be very beneficial. Try to find an agent who is familiar with the purchasing of distressed properties, short sales and foreclosures.
4. Have an inspection done on the property. If you are buying a REO and not a property through an auction, you can have an inspection done. This is important because most houses in the foreclosure process haven’t been maintained and often require extensive work. Having the inspection done will give you an estimate of how much it will cost to fix the house up and you can see if there is going to be any profit in the property or if you should pass on it.
Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public. Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or www.title-junction.com
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