Purchasing a foreclosed home is quite different from buying a typical resale. A foreclosed home is the process by which a homeowner’s rights to a property are forfeited because of failure to pay the mortgage.
The home you found might appear to be the right price and be in tip top shape, but before you purchase make sure to take some of these suggestions into consideration.
Reconsider Auctions – This process has many risks; prospective buyers aren’t able to do thorough home inspections or stay informed of outstanding taxes owed on the property before making the purchase.
Budget your Funds– Just because the price seems low to you now, doesn’t mean that something can’t be expected later. With low payments, this gives you a chance to really save your money.
Purchase Through a Bank – It might be better to go through a bank to purchase a foreclosed home. Banks are required to handle and pay off any back taxes and you will be able to inspect the home before purchasing.
Inspect the Home & Neighborhood Thoroughly! – Answer these questions and record your findings when conducting your inspection:
How is the neighborhood?
How long has the house been empty?
How is the landscaping of the home and neighboring homes?
Was the house winterized?
Really take time and think about what your best options are. Are you prepared for the obstacles that could arise when purchasing a foreclosed home? If so consider these suggestions and do your research.
“Really good deals on these bank-owned, they go quick — and the buyer doesn’t necessarily have time to try to work out the financing afterward. They need to work that out first.” – Jenson