San Diego Foreclosure

Buying a foreclosure isn’t always easy, but it can save you a great deal of money, which is why so many people are eager to purchase a foreclosed home.

The first step if you are looking to purchase a foreclosed property is to get pre-approved for a mortgage. It’s a little bit misleading to say that is the first step, however, because at the same time you want to find an agent that specializes in foreclosure listings. You can also search online through a database that shows exclusively foreclosed homes. Open Offer has a database of foreclosed homes
that is searchable.

There are a few reasons for this. Great deals in foreclosures typically go very quickly, so you want to secure your financing first and then find the home. It can also prove to an agent that you are serious about buying a home. The other is that foreclosures are typically handled by one or two agents. Banks tend to hire one or two agents to handle their foreclosure properties, so those agents may be able to tell you about foreclosures that have not yet come out on the market.

You still need to look at comparable prices in the neighborhood to get an idea on what a bank’s bottom line for pricing will be. A house might be priced low, and receive multiple offers that are significantly higher. A home might be priced too high, and you can offer a lower price. But there’s no way to guarantee what will happen, so it is important to study the prices in the neighborhood to get a general idea.

Lastly, don’t forget that the home you are purchasing will be purchased as-is. Many first-time home buyers forget this and expect something like a discount for home repairs. Repairs can be almost inevitable with a foreclosed home.

Excerpt:

If you are interested in purchasing a foreclosure, there are a few things about buying a foreclosure that can be different from purchasing a regular home.

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buying a home, foreclosure, buying a foreclosure, how to buy a foreclosure

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This is filed under Foreclosures.


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