Foreclosure Homes - Buying Foreclosed Real Estate

Many home buyers opt to purchase a foreclosed home because of the

savings. Properties are foreclosed when a homeowner can no longer afford to

make the mortgage payments. After three months of non-payment, the

lending institution will reclaim the property, and resell it to another

buyer at market value. Some foreclosed properties are in bad condition;

however, if you can locate a foreclosed home in good or "move-in"

condition, you have stumbled across a great deal. Here are a few tips on

purchasing foreclosed real estate.

Carefully Consider the Pros and Cons before Buying Foreclosed Real

Estate

The major advantage of foreclosed real estate is the dollar amount you

save by purchasing the home at wholesale cost. On average, expect to

save about 30% when buying a foreclosed property. This is perfect for

investors looking for rental properties or first time home buyers.

Because most properties are in good condition, the home may only need

minor cosmetic improvements. This may include a coat of paint, new

carpet, etc. Prior to submitting a bid for a foreclosed property, it is

important to have the home inspected. If the home requires extensive

repairs, realistically assess whether you can afford the additional expense.

Select a Real Estate Agent with Prior Knowledge of Foreclosed

Properties

When purchasing a home, it is important to choose a good realtor.

Furthermore, many banks prefer working with buyers that are represented by

an agent. This proves that you are serious about buying the property.

Additionally, if you are a new home buyer, an agent can guide you through

the entire home buying process and help you secure financing. Agents

can also check for liens against the property.

Conduct Your Own Research of Foreclosed Real Estate

Although an agent may have a list of foreclosed homes, it will speed up

the process if you have a list of prospected homes. Thus, you should

obtain a listing of homes in your area. To do so, consider subscribing to

an online service that offers up-to-date foreclosed listings.

Furthermore, government agencies may have a selection of available homes. Also,

research public records. Before a lender or bank can foreclose a

property, they must file a notice with the country clerk.

View our recommended source for abcloanguide.com/foreclosedhomes.shtml foreclosure listings online

Carrie Reeder is the owner of ABC Loan Guide, an informational website about loans and abcloanguide.com/badcreditmortgage.shtml bad credit mortgage loans