BUYING A FORECLOSED PROPERTY
Home buying efforts still shift toward foreclosed properties because people know they can get great deals. Any home may be onthe market for sale at various stages of foreclosure. The buyer should be aware of this before making the purchase. The savings on a foreclosed property depends on the stage of foreclosure and the local real estate market.
Risks of Purchasing
Here are some of the known risks of purchasing a foreclosed property:
You cannot see or inspect the property you want before you bid
You buy the house “as is”, so any problems are yours to correct
You pay for the remedies needed
The former owners might have destroyed some parts of the house before they left
The property is prone to damages from the elements
There is a possibility of more maintenance work than you can actually see
Decreasing the Detriments
Don’t worry. There are ways of lessening the bad things you can experience when you purchase a foreclosure. Below are some of them:
Try to get a professional home inspector for the property of interest. This allows you to know the property first before you bid.
Research the history of the house. Go to the public library to view public records about the property. Try to find out how long the former owner had it, and when it was placed on the market.
Find out any work done and if permits were given. Doing so allows you to see whether the previous work done on the property was finished or not. It also informs you if the previous owner had new elements installed like a new heater.
Perform your own inspection. You can do this without entering the property. Peeking through the windows, knocking on the doors, and inquiring about break-ins or squatting are all allowed. Neighbors can help you gain as much information as you can. Look for agents with National Association of Realtors’ SFR (Short sales and Foreclosure Resource) Certification. These professionals will help you go through the process of buying a distressed property.
Finding a Foreclosed Property
The following are some ways in which you can find foreclosed properties:
Search bank foreclosure listings at their websites (Bank of America, Wells Fargo).
Check out government-sponsored companies (Freddie Mac, Fannie Mae) for listings.
Look for foreclosures on the websites of the federal government’s DHUD (Department of Housing and Urban Development).
Search private companies for a fee (RealtyTrac).
Consult a real estate agent and ask help for finding foreclosed properties ahead of others.
If you are seriously considering buying a foreclosure, it is wise to reflect on it for a while. Ask yourself how dedicated you can be to the property. When you have decided, foreclosure home buying just might be the opportunity you have been waiting for to acquire your own home.