How to Buy a Foreclosure

One of the best places to invest is in foreclosures and bargain residential real estate.

The current market conditions make it a perfect time for a small investor to purchase one or more foreclosure properties for their private residence, rental or resale. During economic downturns, more upscale homes go into foreclosure, so the notion that foreclosure homes are only available in crime-ridden areas is inaccurate. Beachfront and homes in affluent areas are part of the mix of foreclosed properties available.

You can buy foreclosures for as cheap as 30% or 40% below market, but most foreclosures sell for 5% below market. Yet the savings may be twofold if the property is purchased from the lender who holds the mortgage that’s in default. That lender may be willing to waive some closing costs, maybe even offer a break on the interest rate or the down payment.

For most consumers, however, the foreclosure process can prove daunting, Reed says. Good buys are available, but they require research, preparation, patience and persistence.

For novice investors, buying from the lender is the safest way to buy.

Bank-owned properties offer the safest deal for inexperienced foreclosure buyers. There is no risk. There are no taxes, no liens, no tenants to evict.

If you have the right team in place including your real estate attorney and a Certified Distressed Property Expert certified REALTOR®, your chances of buying a foreclosure are greatly improved. To really get a good idea of what a CDPE can do for you click on the following link What Is a Certified Distressed Property Expert (CDPE)? To find out all the benefits and options of purchasing a forecloure, contact Eddie Perez, Broker-REALTOR®, CDPE or Anoir Redouane, REALTOR®, CDPE. Their market includes Hoboken, Jersey City, Weehawken and Union City. They can be reached at 201-344-2886 or ateddie@InvestHoboken.com or Prevent Foreclosure.