Foreclosure is a legal process in which the mortgage lender makes an attempt to recover the balance of an unpaid loan from a borrower who has stopped making payments. The lender forces the sale of the home as collateral for the loan. The major difference from a traditional home sale or even a short sale is the home-owner no longer has possession of the house. If you are thinking about buying a foreclosure in the future there are a few things you need to know.
1. Get Pre-qualified
You should always get a letter of pre-qualification before you start your home searching process. This is especially important when searching the foreclosure market. Foreclosures are a very competitive market, since so many people are looking for a bargain. When you have already been pre-quailified for the purchase price of a particular property your offer looks stronger than your competition.
2. Budget for Repairs
Most foreclosures are sold in "as-is" condition. This means the bank will not make needed repairs to the property before the sale. The bank usually prices the foreclosed home at a price that reflects the needed repairs, so there is not usually much room for negotiations. Of course, you should always attempt to get a lower price.
3. Do Your Research
Pick an area you are interested in and do research on what comparable homes are selling for. Make sure you choose homes that have recently sold in the area that are as close as possible to that property. Some things you should focus on are : # of bedrooms, # bathrooms, square feet, school district, lot size, days on the market, etc.
4. Ask for Closing Cost Assistance
Since the bank is usually unwilling to make any necessary repairs you should have your realtor ask for the bank to help with closing costs. You have a decent chance of getting some of the closing costs taken care of by the bank. This will allow you to keep more money in your pocket to make repairs after settlement of the home.
5. Get a Home-Inspection
Even if the home is being sold "as-is" make sure you have a home inspection contingency written into the agreement of sale. This protects you incase there are major repairs that were unseen during your time looking through the home.
* To receive a list of the current bank owned properties in you area contact me TODAY.*
Chris Lawlor
Realtor @ Coldwell Banker Heritage
cell: 484-560-3226
office: 610-250-8880 ext. 350
Email: clawlor31@yahoo.com
1. Get Pre-qualified
You should always get a letter of pre-qualification before you start your home searching process. This is especially important when searching the foreclosure market. Foreclosures are a very competitive market, since so many people are looking for a bargain. When you have already been pre-quailified for the purchase price of a particular property your offer looks stronger than your competition.
2. Budget for Repairs
Most foreclosures are sold in "as-is" condition. This means the bank will not make needed repairs to the property before the sale. The bank usually prices the foreclosed home at a price that reflects the needed repairs, so there is not usually much room for negotiations. Of course, you should always attempt to get a lower price.
3. Do Your Research
Pick an area you are interested in and do research on what comparable homes are selling for. Make sure you choose homes that have recently sold in the area that are as close as possible to that property. Some things you should focus on are : # of bedrooms, # bathrooms, square feet, school district, lot size, days on the market, etc.
4. Ask for Closing Cost Assistance
Since the bank is usually unwilling to make any necessary repairs you should have your realtor ask for the bank to help with closing costs. You have a decent chance of getting some of the closing costs taken care of by the bank. This will allow you to keep more money in your pocket to make repairs after settlement of the home.
5. Get a Home-Inspection
Even if the home is being sold "as-is" make sure you have a home inspection contingency written into the agreement of sale. This protects you incase there are major repairs that were unseen during your time looking through the home.
* To receive a list of the current bank owned properties in you area contact me TODAY.*
Chris Lawlor
Realtor @ Coldwell Banker Heritage
cell: 484-560-3226
office: 610-250-8880 ext. 350
Email: clawlor31@yahoo.com
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