How to Buy Foreclosed Property

By eHow Personal Finance Editor

Buy Foreclosed Property Buy Foreclosed Property

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If you're looking for real estate bargains, consider buying foreclosed property. A foreclosure takes place when a homeowner or property owner cannot pay the mortgage fees on the property and is forced to give up the land to pay back what is owed. Here's an overview of what you'll need to do if you want to buy a foreclosed property.

Instructions

Difficulty: Challenging

Step1
Locate properties scheduled for foreclosure sales by checking classified newspaper ads for listings under Foreclosure Notices, Auction Sales or Sheriff's Sales.
Step2
Notify local real estate agents and attorneys that you're interested in purchasing foreclosed properties.
Step3
Check with local lending institutions and government agencies - such as the Federal Housing Administration, Veterans Administration or Department of Housing and Urban Development - about foreclosed properties in your area.
Step4
Investigate foreclosure proceedings in your state.
Step5
Inspect the foreclosed property to determine its condition and market value; obtain sales prices of comparable properties in the area from a local real estate agent.
Step6
Determine ownership, identify potential problems and research any existing liens by conducting a title search on the foreclosed property.
Step7
Contact the trustee of the foreclosure sale to inquire about the minimum bid the lender will accept.
Step8
Determine how you'll finance the foreclosed property or find out if the current loan is assumable.
Step9
Make an offer on the foreclosed property by bidding at the foreclosure auction or submitting a sealed bid to a lender after the foreclosure sale.

Tips & Warnings

  • Foreclosure proceedings can be complicated, so be aware of your state's legal procedures for acquiring foreclosed properties.
  • Since properties are usually offered "as is" at foreclosure auctions, inspect the property before you make a foreclosure bid to avoid a costly mistake.
  • Depending on the reason for the foreclosure sale, there may be a redemption period in which the previous owners can make payment in full and get their property back. Check with the trustee to protect your rights.

Comments

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on 7/18/2007 Well, you can check out the property tax assessment (county website) which is public knowledge and acquire the conveyance deed reference.

Then you have to go to the county land records (Circuit Clerk of the Court) and do a search on the property (try to find the purchase money deed of trust, etc.)

I would say the easiest way would be to hire a title abstracting company to search the land records for you.

oggie76 said

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on 6/10/2007 I found a house that is abandoned. I talked to a neighbor and they said that the owners just moved and it was going to be forclosed on. How do i find out what bank has it finaced so i can try to buy it.

some one please help me

michael ogg

oggie6976@yahoo.com

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