Buying Foreclosures

The lure of buying homes that are in foreclosure is great to those who want to get a home for a low price, but there are some important things you need to think about before purchasing a foreclosure. Here are some tips to help you learn more about buying homes that are foreclosed.

Think About the Current Owner

Most people overlook how things can go wrong if the current owner is still living in the home while the auction is taking place. Once you purchase the property you will be responsible for trying to get the owner to leave, and there is the possibility that the previous owner could be vindictive and vandalize the house. It wouldn’t be the first time that a previous owner causes destruction to the house because they are upset about losing the home.

Purchase From a Bank If Possible

Purchasing a foreclosed home from a bank, known as “Real Estate Owned”, is the best way to go. They will take care of the previous owner and evicting them, leaving you with no hassle in that area. They will pay off all back liens and with the previous owner out of the home, you will be able to inspect the home.

Beat the Competition

Most buyers go the typical route and use real estate agents that help them in foreclosures, but if you have your eye on a certain property, don’t wait. You can ask the lender about purchasing the property before it’s even put on the market for other buyers. This allows you more leverage in price since you are beating the competition to it. If the lender happens to be a local or small bank, they are more likely to sell it directly just to get it off their hands.