Buying real estate through foreclosure will save you money. They say it’s a buyer’s market out there. But what if you don’t have a lot of cash on hand to pay a down payment on a house? Are you reduced to renting for the rest of your life? No. There are many options for people who need help insuring their own home. One way is to consider buying a property that has gone through a repossession process and now belongs to the bank.
Finding real estate that is in foreclosure is the first step to getting a good deal on your next home purchase. Check the classified section of local newspapers for sheriff’s listings and auctions. You can also contact a local real estate agent who may know of the property that is going into default status. It is also recommended that you contact government agencies, such as the VA and HUD, as well as banks and other lenders to see if they have listings that may be of interest to you.
It is important to know the procedures for the purchase of real estate that are in foreclosure. The next step after finding the property you are interested in is to make sure you understand the proper repossession procedures in your state. Each state may have different stipulations that you will need to be aware of in order to purchase property as easily and simply as possible. Check with your local library for more information on these procedures or contact an attorney. Because purchasing a property that has been foreclosed on can be legally complicated, it may be wise to retain the services of a lawyer just in case.
Before you buy, be sure to inspect the property. Once you’re familiar with the course you’ll need to take to purchase foreclosed real estate in your name, you’ll want to inspect it yourself. The services of a professional contractor may well be worth the extra money he spends to determine that the property is fit to live. If you’re willing and able to repair cosmetic damage, make sure the property is safe, sound, and doesn’t need immediate, large-scale renovations.
Also have the property checked for insects, termites, or other potentially harmful animals and insects. Even if the real estate is just a strip of land, you need to make sure it’s in good condition for what you plan to do with it. Since most of these properties are being sold as the previous owner left them, you need to be aware of what you are getting. If possible, do one more visual inspection of the property before final contracts are signed to make sure there is no more damage than you initially noticed.
Contact your real estate agent again and get a printout of the comparable value for a similar property in your area. Check the property and make sure they have any other liens on the property that may prevent your purchase. This can be accomplished by conducting a title search at your local government office. If there is a link on the property, find out what needs to be done to remove it.
If all is copasetic, then you are ready to contact the foreclosure agent. Find out the minimum amount the bank will accept for the property and have your financing ready and in place if you’re not assuming the loan. Make sure there is no grace period for the current owner to buy back the property. This is a protection of your rights. And finally, make an offer on the property. Above all else, make sure you enjoy the property you just bought. This foreclosure has become your little piece of heaven for a fraction of what you could have paid.
