How to Buy a Foreclosure House

Buy houses cheap

You may be able to buy a foreclosure house for half of its value or even less. If you are able to do minor repairs and home decorating yourself, you can usually make quite a bit of money, fixing up a foreclosure house and reselling it later. What better time to begin investing in HUD houses than right now. How do you buy a foreclosure house?

Things You'll Need

• Realtor
• Cash/Financing
• Letter of Credit from your bank
• Find Available properties

Instructions

1. Search for HUD houses and other bank foreclosed homes for sale in your area or where you want to move. Look for HUD signs in windows or on top of the for sale signs in the yard to recognize a HUD forclosed home. Bank foreclosures are not as obvious, but your realtor can tell you.

2. Find a realtor whom you trust, who answers your questions quickly, is knowledgeable about HUD housing rules, bank foreclosures rules, and pursues your interests aggressively, or you may miss out on great opportunities. Only licensed realtors can place offers on HUD homes for individuals.

3. 

   Have your financing plan lined up ahead of time so you know how much you can spend and that you are preapproved. Get a signed letter of approval from your lender to submit with your offers on bank foreclosures. This can make the difference in your offer being chosen over another person's equal offer.

4. 

   Go through the house with your realtor, ask questions about the home from neighbors, look at the neighborhood. Try to buy the worst house in the best neighborhood to make the most money possible after you fix it up.

5. 

   Make your offer before the HUD deadline. However, if the deadline has passed, and you are interested, check to see if the house has sold. If it has not sold, you can still make an offer. Your realtor will need your Social Security number to submit your offer.

Tips & Warnings

• HUD covers realtor fees, you pay title insurance, transfer fees, and any cost associated with getting a mortgage if applicable.

• Have a housing inspector or general contractor come through a home in need of extensive repairs, if this is not your area of expertise, so you are not stuck with thousands of dollars of unexpected repairs.

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