Buying Foreclosed Homes
Foreclosed homes may provide attractive prices for a budding real estate investor. If you are in the market to buy foreclosed homes, viewing websites that display listings of bank-owned real estate might be a suitable place to start. You can contact any bank to inquire about foreclosure listings or utilize websites that provide foreclosure details (see Resources).
Other People Are Reading
-
Financing
-
Financing should be in place before you make commitments to buy foreclosed homes. Meet with your banker or a mortgage lender to discuss the types of foreclosed homes you want to buy. Apply for a mortgage loan to determine your qualifying price range. Speak with several lending institutions about down payment requirements, mortgage interest rates and tips toward financing foreclosed homes. You might have a limited amount of time to settle on an attractive foreclosure property. Presenting a loan approval to the bank or owner of the property may help to demonstrate that you are prepared to buy the foreclosed home.
Locate
-
Some websites provide data that may help you locate foreclosed homes (see Resources). Generally, you can search for properties using details, such as the zip code, or city and state. Typically, you can refine your search to locate certain dwelling types, such as a townhouse, single-family or multi-family property. You also can locate foreclosed homes using a price range, such as $50,000 to $150,000. A real estate agent could help you locate foreclosed homes.
-
Auctions
-
Many foreclosures are sold through an auction process to the highest bidder. Bankers may hire the services of an auctioneer to sell bank-owned properties. Some auctions are held at the local courthouse, and some sales occur on the foreclosed property site. You might acquire knowledge and experience toward buying foreclosed homes if you attend several auction events.
Research
-
Researching the areas where you want to buy foreclosed properties could give you some insight about the average selling prices, market values and other neighborhood demographics. Your research may lead to properties that are in a preforeclosure stage. During this time you may have an opportunity to obtain a discounted price from the owner or via a short sale, as the owner might be motivated to sell the property at a reduced amount versus enduring a foreclosure.
Title Search
-
A title search can determine if the property is encumbered with outstanding liens or other judgments. Generally, you can view a property's title records within the local courthouse. However, you could hire a title attorney to check the title records for outstanding mortgage liens, tax liens and mechanic's liens. A title attorney can analyze the title records to determine if other owners or banks might have claims against a foreclosed home.
-
References
Resources
- Photo Credit Jupiterimages/liquidlibrary/Getty Images
