How to Buy A Foreclosed Home Or Property

If you're in the market to buy a home, now is the time. The only thing worse than having a home foreclosed on, is not being able to sell it afterwards. This saturates the market with homes. You can find excellent deals on foreclosed homes.

Difficulty: Moderately Easy

Instructions

1. The first step is to take a trip to the bank. At this time you want to pre-qualify yourself for a mortgage loan. You can inform the loan officer at the bank just that. The reason you want to pre-qualify yourself is because you don't want to go hunt for a house that you cannot afford. A good rule of thumb is that you shouldn't spend more than 30% of your monthly take-home pay on a mortgage payment.

2. Now that you know how much you have to spend, it's time to shop. Contact your local real estate agency and find out which agent deals with foreclosures. This agent works exclusively with foreclosed homes. You can also check out listings online of foreclosed homes. Simply type in your zip code to search foreclosures in that specified area.

3. It is important for you to inform the bank of your intentions. Some special loans will not let you purchase foreclosed homes. For instance, a first time home buyers loan (FHA), requires an inspection to be done and passed on the property. Ask your real estate agent about this information.

Tips & Warnings

• Search tax records on the property. You want to investigate any back taxes owed on the home. These will have to be paid as well.
• Always have a home inspected. Home inspections shouldn't cost more than 3 to 5 hundred dollars. It may sound steep now, but buying a home with foundation issues will cost you much more in the long run.