Foreclosure 101: Everything You Should Know
If you’re considering moving then you may be wondering how to go about buying a foreclosed home and tips for doing so the right way. You likely have a lot of questions and not a whole lot of answers if this is a new topic for you.
This Foreclosure 101 guide will cover everything you should know so you can move forward with confidence. Be glad to know that there are more opportunities these days and the overall process has become a bit easier.
Buying A Foreclosed Home
There are different types of foreclosed homes and sales such as pre-foreclosure, short sale, sheriff’s sale, and bank-owned. There is financial help available for homebuyers if you’re on a tight budget such as the USDA Loan Program and Veterans Administration Loan Program. The main reason why a foreclosed home is cheaper is that the owner might be on a tight schedule to sell and in a financial bind. Keep in mind that these types of homes are typically sold “as is.”
What to Consider & Look for
There are certain aspects to look for when it comes to buying a foreclosed home. First, consider the price range you wish to stay within. Think through your monthly income and what you can realistically afford, including all your bills. Be proactive in seeking out information on the house’s history and have an inspection done so you know what you’re getting into and what you can handle when it comes to repairing and updating it. Always check for plumbing problems and exterior damage as well as looking for signs of deferred maintenance. Look at comps to figure out what to offer and get a preapproved letter.
What to Avoid
There are some mistakes you must avoid when buying a foreclosed home. For starters, don’t go at it alone, and consider working with a real estate agent who specializes in foreclosures to have all your questions answered. Next, always have an inspection done so you know exactly what you’re buying and the work it’ll need. Widen your search and don’t limit yourself to only the foreclosures listed on the Internet.
How to Find Listings for Foreclosed Homes
You’re probably also wondering where you can find attractive foreclosure home listings if you’re interested in taking the next step and purchasing a home. Finding the right one can be rewarding since they are sold below market value and save you a lot of money. However, you may be competing against others who recognize this and want a deal too. Of course, you can find them on the Internet through websites and specifically foreclosure websites. Other avenues include using a multiple listing service (MLS) or getting in touch with and working with a real estate professional who specializes in foreclosure properties.
Conclusion
These tips will help you successfully navigate the home foreclosure buying process and ensure you’re happy and comfortable with the outcome. Remind yourself to do it right and avoid the common mistakes since there is plenty of risk that comes with buying foreclosed homes.
