Before You Write a Check to Buy a Foreclosure...

Are you thinking about buying a foreclosure property?

Buying a foreclosure is not as simple as it sounds and requires some expertise. If you are a first time home buyer, I recommend you find yourself a Realtor who can assist you with the process.

There are many different ways to buy a foreclosure home. You can buy a home as a “Short Sale”, go bid on a home at a Sheriff Sale Auction, or buy a home after the auction which is typically listed as a Bank Owned Foreclosure.

In all instances you are buying a home in “As-Is” condition. Many foreclosure homes have been neglected, damaged, vandalized, and should be inspected by a licensed home inspector. Plan a budget for repairs needed prior to writing an offer.

Have your Realtor complete a “Competitive Market Analysis” of home sales in the area. Remember many foreclosures are listed below Market Value and can be a bargain.

Most “Short Sales” are listed below Market Value but need the approval from the lender before a sale is accepted.

Make sure you are pre-qualified to buy a home with a lender before writing an offer. A bank will only negotiate with qualified buyers. This means showing stated income, pay-stubs, 2 year tax returns, proof of down payment. If a cash offer verification of funds in the bank are required.