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11 Tips On How To Buy A Foreclosure Home

Feb 14, 2008
Anyone can buy a foreclosure home with some knowledge and sound finances. But before you do so, you need to know that you are actually purchasing a home from someone who can no longer afford to live there. Foreclosures are not easy to find but once you have the resource and know-how, you can even profit from them if you buy a foreclosure home just so as to resell rather than staying there.

Here are 11 surefire tips anyone can use to buy a foreclosure home.

1. Know that the real estate you are buying belongs to a previous home owner who was unable to continue paying the mortgage instalments. This being the case, there are some legal matters which your housing agent have to assist.

2. Assess if making an offer is worthwhile. Normally, the banks would like to recover partial if not all of their loans. Because of this, they are often willing to off load the property at up to 30% off its value.

3. Get yourself an experienced foreclosure agent. In most cases, the sellers prefer to deal directly with the buyer's representation.

4. Conduct a search and browse through major property magazines, newspapers and classified ads online and offline. Call up the property lenders, government agencies such as Fannie Mae, Department of Housing and Urban Development (HUD) and so on for foreclosure homes to purchase. A check through public records such as the local county clerk's office for foreclosure notices would be helpful.

5. Inspect the property. Check the surroundings as well as the property itself. You would be pleasantly surprised to note that many of these homes are in good condition.

6. Get your agent to find out what is the fair value for the place you are getting when you buy a foreclosure home. There is no point going through the trouble of getting foreclosed properties if the discount is insignificant.

7. Make sure you check your credit report and ensure all your personal details are properly updated. This is also the time when you also confirm your finances are sound and you can qualify for a mortgage application.

8. Let your agent represent you in making an offer to the listing broker to buy a foreclosure home.

9. Verify if the foreclosed property is clear of its liens. These can include outstanding property taxes, utility and conservancy bills and so on. Check out who is liable for the payment.

10. Make arrangements to have a full house inspection done with the permission of the seller. It is your obligation to foot the bill so, please do not argue with the seller about this.

11. When you buy a foreclosure home, expect paperwork and some administrative papers to clear. This is normal procedures.

Okay, by now, you should know more about how to buy a foreclosure home. For a complete A - Z guide on how everyone else actually do it, visit my property blog and get your dream home now.
About the Author
Learn the A to Z of how to buy a foreclosure home at huge discounts. Buy a dream home to stay or resell for profits!
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