5 Tips for Buying a Foreclosure

By
Real Estate Broker/Owner with Taos Real Estate | Page Sullivan Realtor, Associate Broker
https://staging.activerain.com/droplet/4cRk

Mountain Homes

I just read a really good article which was on the National Association of Realtors' website.  5 Tips for Buying a Foreclosure was the title and I will just give you a short overview.

Having listed a few foreclosure properties myself and having looked over the advice in the article, I think these tips are legitimate and very helpful. 

When lenders take over a home, they want to sell it as quickly as possible.  Since lenders aren't in the real estate business, they turn to real estate broker for help marketing their properties.  Buying a foreclosed home can be a bargain, but the process can be problematic.

The first tip is to work with a Realtor who has foreclosure experience.

working with a qualified Realtor

2.  Be ready for complications.  Ask your Realtor to recommend a real estate attorney who will explain your state's foreclosure process.  Be patient.

3.  Work with your agent to set a price.  Ask your agent to show you closed sales of comparable homes.  These sales will show you what the market value of the foreclosed home is.  Start with an offer well under the market value to see if the lender may be in a hurry to get rid of the house.

                                            Good deals on Foreclosed Properties

 Pennies on the dollar for foreclosed properties

4.  Get your financing in order.  Many Lenders require buyers to submit a financing preapproval letter with the purchase agreement.  They often reject all contingencies.  The good news is that most foreclosures can close quickly.

5.  Expect an as-is sale.  Be sure to have enough money left after the sale to make repairs.  Most lenders may give you credit for some minor repairs, but will not help with major problems with the foreclosure>
Don't be caught by surprise and make sure that you have money to make the home livable after closing.

No surprises with home repairs

 

I hope these tips on buying a foreclosed property have been helpful to you.  It is a great time to buy with low mortgage rates and many great deals on foreclosed properties.  Have fun, be patient, and make a great deal.

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Rainer
142,813
Robert Earl -The Earl of St Pete
St Pete LUXE Living Group - Saint Petersburg, FL
The Earl of St. Pete

Still are great reminders because there are great values available to buyers that work with professional agents and do their homework.

Northern Virginia MLS Listings

Jul 15, 2010 12:05 PM #1
Rainer
60,622
Pam Turner, REALTOR®, e-PRO®, SFR
Century 21 Belk Realtors Dalton GA - Dalton, GA

Very good, basic tips! Everybody needs to at least know these 5 things before pursuing a foreclosure - thanks for sharing!

Jul 15, 2010 12:38 PM #2
Rainmaker
64,648
Michael Ford
Coldwell Banker Heritage Homes - Marion, AR
Matching Families with Homes

Page well done.  NAR puts out a lot of great information it's a shame that more of our members don't take advantage!

Jul 15, 2010 12:48 PM #3
Ambassador
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Page good tips, agents do need to remind their clients the sale will be an as is.

Jul 15, 2010 02:05 PM #4
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Rainer
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PAGE SULLIVAN

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