foreclosure for sale 2If you are interested in purchasing a home for a significant discount, you will likely be spending a lot of time looking at foreclosures and short sales. It’s important to remember, however, that the process of buying a foreclosure is not as simple or as clear-cut as buying a home in ordinary circumstances.

When you buy a foreclosure, you will be dealing multiple third-parties and agencies, many of whom have their own agendas that can often be in conflict. If you buy a regular home, you are dealing with just the seller and possibly his or her agent.

There are a few things to keep in mind when purchasing a foreclosure.

For starters, buying a foreclosure can often take a long period of time. There are government incentive programs that are meant to speed up the process but it is important to remember that it can often take months. If you need to purchase a home and move quickly, foreclosure shopping is probably not for you.

You do not want to bid too low on a home. It is a foreclosure, and it is a deal, but banks tend to list at a very low price in order to sell the real estate quickly. When this happens, multiple offers can often come in, and many will be offer the list price. If you are really interested in a home, you might not want to bid too low.

If you are planning on looking at foreclosures, make sure that you are pre-approved for a loan. This will verify how much you can borrow and it will also show that you are ready to make a deal and purchase a home.

It’s also important not to get locked into a home. Many foreclosures might not be in the best condition. It’s a good idea to have a contract that says you can walk away from a deal if the home’s condition is significantly worse than you thought. However, if you don’t mind some repair or renovation work, a foreclosed home with some damage can often be a great deal. It’s just important to make sure you aren’t getting more repair work than you can afford or you can handle.

Tags: , ,

This is filed under Foreclosures.

     Twitter It!