1 / 8

5 Tips For Buying Foreclosure Properties

5 Tips For Buying Foreclosure Properties

raymonna88
Download Presentation

5 Tips For Buying Foreclosure Properties

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 5 Tips For Buying Foreclosure Properties

  2. As the economy slows, foreclosures are up in most of the metro area in the country. An increase in foreclosure activity might sound like bad news, but for savvy investors, foreclosures are one of the best ways to acquire properties at below-market value. Buying a foreclosed house can be a very rewarding experience if you do your research diligently. If you're planning to buy a foreclosed home, there are some things you need to know before taking the plunge.

  3. Don't buy at a foreclosure action Buying a property at a foreclosure action is risky. There is no way to inspect the home before you make any bid. You have no clue if there is any damage to the property. The property might have been vacant for a while, or there are outstanding taxes owned on the property. A lower market value purchase might end up costs you enormous unexpected expenses on innovation or on paying off anything owned on the property.

  4. Work closely with a real estate broker • To find the information of the foreclosure properties, you can look at a local real estate website that lets you filter the results to see only foreclosures. However, work closely with a real estate broker could speech up your real estate search. A lot of realtors have a long-term relationship with banks, when it may take a day or even a week before a listing actually comes onto the database, they know of listings that haven't come on the list yet. Work closely with the broker, call them about the property you're interested in could help you always stay ahead of other investors.

  5. Buy REO It is always a headache for buyers if the homeowner who defaulted is still living in the home when the foreclosure action takes place. A better bet is to look for REO (Real estate owned by banks). The banks is required to pay off the senior liens, you don't need to worry about if anyone living there. You will also be able to inspect the house for damage and estimate the costs of the innovation.

  6. Get pre-qualified It is recommended that getting a letter of requalification from a lender before you start house-hunting. The foreclosure market is somewhat competitive because so many people are looking for bargain-basement prices. Sellers don't want to wait until the buyers get loan approval and take the risk that it won't pan out. That's why sellers always want a preapproval letter from a lender before accepting an offer.

  7. Calculate how much you can afford In a foreclosure transaction, the seller is not going to let you fix the property before the deal closes. Some foreclosure properties are too run-down to qualify for Federal Housing Administration or conventional mortgages, as a buyer, you have no choice to pay cash. Even you are qualified for the financing, or you have enough cash to pay for the property, the renovations cost sometimes could be more than you expected.

  8. Sources: http://www.asreos.com http://ezinearticles.com/?5-Tips-For-Buying-Foreclosure-Properties&id=7216020

More Related