How to Buy an Unlisted Foreclosed Home?

With the housing market hitting a new record every month, the time is perfect for the first time home buyer or investor to purchase a foreclosed home. Many are available for a fraction of their assessed market value, and they prove to be valuable investments in a shaky economy. While no one likes to think of a displaced homeowner, the plain fact is that someone has to buy foreclosed homes, and it might as well be you.

Difficulty: Moderate

Instructions

1. Contact the previous owner if possible. Ask them who holds the loan on the house. Neighboring homeowners may have a phone number or address for them, or you could look for a foreclosure notice on the house itself.

2. Review the information where you found that the house was going into foreclosure. If you read it in a newspaper, you can contact the paper and ask for archived information.

3. Inquire at the county courthouse. The Register of Deeds will have a copy of the original mortgage on file. He can look it up by address. Write down the mortgage information; this is who you'll need to contact.

4. Call the bank that holds the defaulted mortgage. Ask to speak to the property manager. While some larger banks and mortgage companies manage their foreclosed properties in house, others will have a contract with a realtor. Either way, you can find out the pertinent information such as sale price, days since default, whether there are any liens or back taxes owed, and where to offer a price.

Tips & Warnings

• While its great to have the first chance on a foreclosed home, be aware that the price will drop once the house is listed for a while. Decide how badly you want it...and whether your willing to pay top price to get it.