Foreclosures today: In today’s market, there are a lot of bank-owned properties available. However, trying to purchase one can cause buyers to turn the other way. Here are some steps towards purchasing a foreclosed home.
Most property listing websites charge a fee: Most foreclosure websites charge to display a listing of available foreclosure listings. However, you can get the same information free from your local agent. Banks often put their foreclosed homes up for bid at auctions or in most cases, they turn them over to a real estate broker. If the property has been on the market for less than 30 days, lenders usually request full-price offers. After 30 days, the lender may be more willing to accept lower offers. And, after 60 days, you can continue to lower your offer price.
Pay for a home inspection: A home inspection should always be on your checklist when buying any home, let alone a foreclosed home. You will need to know what repairs are necessary and a home inspection that costs you $200 – $400 can save you a lot of headache and money in the long term. In addition, the house may not have utilities running and you can try to negotiate with the lender to get those temporary turned on for the inspection.
Redemption Periods: Some states have a redemption period that allows for the foreclosed homeowner to “redeem” their property by satisfying their debt after the foreclosure.
Patience: The lender may often take more than 60 days to accept your offer on a foreclosed property.
Title Insurance:Title insurance is a safe precaution for you, “the buyer”, as protection against any liens that weren’t disclosed or discovered.
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