Insurance Business Blog
A blog all about insurance products by a former agent
© 2015 Insurance Business Blog, all rights reserved

How to buy a cheap foreclosed

home

There are many different aspects to consider before buying a foreclosed home, and while the price may look to be more appealing on a foreclosed home, the buyer must take into account that the seller whether that be from a bank, trustee, or private auction, is selling a home that is not necessarily at a lower market value. Often times, a foreclosed home is being foreclosed because the seller had an unforeseeable circumstance arise which has caused them to miss payments or not be able to pay down their mortgage because of other mounting bills. Some examples of this are people who lose their job, move to a different state, have mounting medical bills from an illness, or even be in financial troubles because of a messy divorce. With these taken into account, a foreclosed home won’t necessarily sell for a discounted price because of the market. The house that is in question will be appraised and the condition of the home taken into consideration. However, a house that is in relatively good shape, despite being in ‘foreclosure,’ will reflect the value of the homes that surround out. A private auction organization, the trustee, and the bank are still looking to make as much from the property that they can and usually won’t sell the house for less than what it previously sold for. Now if you are looking for a home to renovate, or you have extra money to put into a home that is falling apart, then you may get a better deal on homes that are in declining condition. Homes that need major repairs, and have major issues with crucial elements such as piping, roofing, and flooring. Usually those who are looking to buy a home however, do not have extra cash to do this and that’s why they are looking for a cheaper home to begin with. There are three ways in which you can go about getting a better deal on a foreclosed home, however it takes research on your part: 1. Buy homes in their ‘as is’ condition but be wary of liens that may be against the house as these stay with the house. However, these may bring down the value of the home. 2. Buy directly from the bank, and look to buy more than one home at a bulk price. 3. Buy from a private auction, don’t get overly excited, and see about getting cheaper financing. Nevertheless there are some additional things to keep in mind: 1. As a first time home buyer, do not buy from auctions as there are a lot of risks associated with this environment. 2. Get information on the owner as dealing with an owner who is still currently living in the home at the time of the foreclosure, may be a difficult problem to deal with after the transaction has been completed. 3. Get pre-qualification from a lender so that you can move quickly when looking at homes. 4. Expect a low appraisal coming out of the home. 5. Be wary of the maintenance fees that you may need to put into the home prior to buying it. Make sure to get a thorough inspection of the home before buying, and take into account that a foreclosed home may not being closed due to poor condition, so it’s best to do research prior to buying, especially if a home is going as is.
House Mansion Country house
Insurance Business Blog
© 2015 Insurance Business Blog, all rights reserved

How to buy a

cheap

foreclosed home

There are many different aspects to consider before buying a foreclosed home, and while the price may look to be more appealing on a foreclosed home, the buyer must take into account that the seller whether that be from a bank, trustee, or private auction, is selling a home that is not necessarily at a lower market value. Often times, a foreclosed home is being foreclosed because the seller had an unforeseeable circumstance arise which has caused them to miss payments or not be able to pay down their mortgage because of other mounting bills. Some examples of this are people who lose their job, move to a different state, have mounting medical bills from an illness, or even be in financial troubles because of a messy divorce. With these taken into account, a foreclosed home won’t necessarily sell for a discounted price because of the market. The house that is in question will be appraised and the condition of the home taken into consideration. However, a house that is in relatively good shape, despite being in ‘foreclosure,’ will reflect the value of the homes that surround out. A private auction organization, the trustee, and the bank are still looking to make as much from the property that they can and usually won’t sell the house for less than what it previously sold for. Now if you are looking for a home to renovate, or you have extra money to put into a home that is falling apart, then you may get a better deal on homes that are in declining condition. Homes that need major repairs, and have major issues with crucial elements such as piping, roofing, and flooring. Usually those who are looking to buy a home however, do not have extra cash to do this and that’s why they are looking for a cheaper home to begin with. There are three ways in which you can go about getting a better deal on a foreclosed home, however it takes research on your part: 1. Buy homes in their ‘as is’ condition but be wary of liens that may be against the house as these stay with the house. However, these may bring down the value of the home. 2. Buy directly from the bank, and look to buy more than one home at a bulk price. 3. Buy from a private auction, don’t get overly excited, and see about getting cheaper financing. Nevertheless there are some additional things to keep in mind: 1. As a first time home buyer, do not buy from auctions as there are a lot of risks associated with this environment. 2. Get information on the owner as dealing with an owner who is still currently living in the home at the time of the foreclosure, may be a difficult problem to deal with after the transaction has been completed. 3. Get pre-qualification from a lender so that you can move quickly when looking at homes. 4. Expect a low appraisal coming out of the home. 5. Be wary of the maintenance fees that you may need to put into the home prior to buying it. Make sure to get a thorough inspection of the home before buying, and take into account that a foreclosed home may not being closed due to poor condition, so it’s best to do research prior to buying, especially if a home is going as is.
A blog all about insurance products by a former agent
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