How to Buy a Foreclosure

Foreclosures are at a all time high. If you are a buyer looking for a new home to occupy or as an investment now is a great time to buy! I am a real estate broker who has sold hundreds of foreclosures. This eHow will give you tips on dealing with banks when trying to buy a foreclosed home

Difficulty: Moderate

Instructions

1. The Home: Make sure you get a termite inspection as I have seen many foreclosures with termites. Get a professional home inspection or at least check it closely yourself. Be sure and check out the exterior cooling unit. Sometimes the copper from the inside of the unit has been taken.

2. The Offer: Use a Realtor who understands foreclosures. The listing agent is usually the best and they have direct contact with the selling bank. If near the end of the month you might want to wait until the first of the month as many prices are dropped at that times. Keep your contract clean as possible, that is not a lot of contingencies on it. Have your loan pre-approval letter ready or proof of funds if cash. Make a reasonable offer, low-ball offers will many times get you no response at all from the bank.

3. The Closing: Many banks will give you free title insurance if you close with their attorney. Make sure the attorney gets the title clear of liens. If the property is a mobile home ask the bank for the mobile home title. This is not the same thing as the title to the land. You can buy without it but there is some risk. Some banks will not have the mobile home title available.

Tips & Warnings

• You can search the internet for foreclosures or ask a realtor.
• If questions post them below.
• Once you close take quick control of the property as vandals are prone to hit foreclosed and empty homes