Steps To Investing In Foreclosed PropertiesKnow the Process
Things change from one location to the next and with the turmoil that the system is in it can even vary as laws get changed. For this reason it is in your best interest to review every legal aspect on the laws regarding your particular area. As well you should know each and every form of foreclosure option available in your area. This way you can determine which one would be more advantageous for your particular situation as you begin looking at properties.
Using Online Foreclosure Listings
The biggest obstacle you will have is to find your prospective listings in a timely manner. That leaves out news papers and the like. In today's world the Internet is the single best and fastest way to get this information. It can be streamed to your laptop, tablet or smart phone almost as quickly as it becomes available.
Get a Real Estate Agent
Once you know the particular area where you are looking to purchase, find a competent real estate professional that deals in foreclosures. If you are not completely familiar with the area this person can be invaluable to your search.
Get Your Financing
Absolutely do not do anything. Do not search for any property until you have gotten your finances set for the project. You will find that listings that are sold at auction have no warranty on them and you will likely not find a lender that is willing to give you a mortgage on the property. Cash is the best option if you have access to it.
Do a Full Search
It is easy to get caught up in the moment, find a place that you love, get a good deal because very few folks show up and purchase a great property. That is until you run the title search and find out that there are all sorts of liens on the property. All of which you are now responsible for since you purchased the property. Therefore, once you find a property that is coming to auction that you are serious about get the title search done before bidding and be safe and happy.
Take Your Time
Remember there are far more foreclosures on the market then there are buyers. Take your time and have all of your researching done before you make the offer to buy, get the inspection, the research on comparable values. Make sure that the inspection is clean and free of costly repairs. Factor all of these into your offer. The most important and hardest thing to do is, be prepared to walk away if the counter offer is not something that you are comfortable with. Like I said, there are a lot of other homes out there waiting for someone to buy them.
by: Julie Thompson