Foreclosed homes are everywhere in the market today, just look. Beware, while suggested retail prices are low, purchasing one can be tricky! Preparation is the key. You will not have the same protection as buying a home the conventional way unless you or your agent do the homework!
1. Don't pay a fee for property listings. There should be real estate agents who specializes in foreclosed properties in your market. Ask, don't assume. This person can be a great resource. Seek out these specialist. They can save you time, money and headaches.
2. Invest in a home inspection. This is always a good idea when you purchase a home, but for a foreclosure, it is especially true! Arrange for utilities to be turned on before you purchase. Check with your local market but typically home inspections range from $300 to $500. A little up front money can save you thousands in the long run!
3. Don't assume the sale is final after the closing. Hire an experienced agent to make you aware of "Right of Redemption Laws." Also, seek a qualified legal expert in this field to fully explain these laws as well.
4. Buy title insurance. Title insurance will protect you in the event a lien you were unaware of is filed on the purchased property. It will also prevent a previous owner from making a successful claim on your property after the purchase. Always seek legal guidance from a qualified legal expert in the field of purchasing foreclosures before you buy! Always!
Rick Knotts
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