subject: What Purchasers Should Know About An Arizona Foreclosure [print this page] These days it seems as if there are bank owned properties on every block. If you are looking for a new home in Phoenix, Flagstaff or hundreds of other cities or towns, an Arizona foreclosure may offer a great bargain for you.
In order to purchase a bank foreclosure, you should have financing organized before making an offer on the home. Banks may not be willing to finance homes that they have already foreclosed on. Many banks have policies that will not allow them to make a loan on their own properties. The investors often feel that they have lose enough money on the property and are unwilling to take the chance on further loss. If you have arranged financing, you are more likely to get the best price on the home you want to buy.
Even when economic times are good, bank foreclosed homes make a great bargain. Banks do not want to keep the house that is not paying them any money, so they often sell at below market value to clear them off the books. At times when there are large numbers of foreclosures available, banks are willing to take a greater loss. If the home was purchased at a time when property values were lower than current values, then the bank can sell the home for less while they still regain all that was loaned on the property.
When purchasing any property, you will want to be sure that it is free of any other liens. Liens are legal claims that other individuals or companies may have had against the former owners. When the owner did not meet his or her financial obligation, the creditor went through the court and placed a lien against the property. As the bank now owns the property and wants to sell it to you, you will want to be sure that they have paid off any claims against the property. Title insurance companies will do a search for any liens. Once they have been paid, the company will issue you a policy that will pay off any liens that arise at a later date from previous owners.
Some foreclosed homes may require repairs to make them livable. If you are a home handy person this may make the home even more of a bargain and allow you to build sweat equity into your home as you make those repairs and catch up on normal home maintenance. In addition, there may need to be some repairs made due to damage caused by angry former homeowners in response to the foreclosure. Many potential purchasers find that a home inspection is well worth the cost.
While home ownership is an excellent choice for some individuals or families, for others it is not the best choice. If your job requires you to move on a regular basis, you may be stuck with payments on a home located in a place where you are unable to live. While homes may be selling great at one time, the market can change as it did in 2008 and it can suddenly be very difficult to sell a home for several years.
Due diligence is expected of anyone planning to make a home purchase. This can prevent unexpected surprises. This is your time to make sure that you find out all that is possible about the property that you want to buy. You will want to check out legal as well as physical issues.
When in the market for a new home, do not overlook the value that may be found in an Arizona foreclosure.
by: John Goodman
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