Buying A Foreclosed House
Home buyers and investors interested in foreclosure homes are generally looking for a bargain and find that ‘distressed’ properties present buying opportunities for them. Distressed properties are called that because the owner is in financial distress not because the property is in poor condition though some are in need of repair.
Inexperienced buyers need to gain knowledge quickly to compete with other buyers and investors and must be willing to accept a much higher level of risk in buying a foreclosed house. Having a real estate working as your advocate may be critical to your success for research and ensuring that the property can be mortgaged, that the title is clear, and that the seller will be able to close the transaction in a timely manner. Many of the disclosures that protect home buyers in conventional real estate transactions do not apply to buying a foreclosed home.
The timing of purchase can begin as early as pre-foreclosure by approaching an owner in default and making the purchase before the lender forecloses. Some Multiple Listing Service (MLS) listed homes may be in a pre-foreclosure status. A public auction may be held if the default on the mortgage is not resolved and sometimes you can end up buying a foreclosed house from a lender who has already foreclosed on REO (‘real estate owned’) property.
Contact NAEBA today to find an agent who can explain the intricacies of buying foreclosure homes in greater detail.