Since 2008 nearly 10 million homes have been foreclosed on in America. Today, the amount of homes is a trickle compared to what it was at the height of the recession. But even though the blue sign out front is dwindling so many buyers are still making some lovely savings taking this route instead of the conventional route.
But those who have made savings have followed these tips to finding a deal in foreclosure.
Choose An Expert Real Estate Agent
You want an agent that is without a doubt great at foreclosures. Someone who knows how to navigate the market. Someone who can give you advice and has helped other buyers find the right foreclosure. The best agents will have significant experience on foreclosures or specialize in this type of sale. If you find an agent that doesn’t have any experience with foreclosures – move on.
Do Your Financial Due Diligence
The last thing you want is dig yourself in a hole because you didn’t find out what the house was going to cost you. Firstly, you want to know what other properties in the area with similar characteristics to the home you intend on buying sold for. Then ask yourself, is that really a deal? But before you can answer that you’ll need to have an inspection done and a building contractor give you a quote on the work that needs to be done. Try to get a few quotes and estimates since most contractors will drive out and give quotes for free.
Know The Limitations And Requirements
You could have found a diamond in the rough, and are ready to make an offer. That doesn’t mean you’ll end up getting the home. Some lenders may have certain requirements the home needs to meet that could necessitate some repairs. The bank foreclosing on the property won’t complete these repairs and causing the deal to fall through. Know the restrictions created by your mortgage lender and then either find alternative home or alternatives lenders. You could get a 203k loan, which allows buyers to purchase “distressed” properties as primary residents, since the FHA backs the loans.
This is just some advice you should keep in mind. However, the best advice you’ll receive is finding the right real estate agent, because with the right agent by your side anything is possible.