BUYING A FORECLOSURE

When purchasing a foreclosure, you have to be financially ready to move forward. If a home seems to be a good deal in the location you are looking, most likely there are others looking there, and quite possibly, at the same property as you. Here are some tips to help ensure a fair shot at the foreclosed property:

• If paying cash, have a letter of credit from your lender to show sufficient funds to purchase and close on the property.
• if using a lender, be sure to use a direct lender. Direct lenders fund their own loans.
• Be prepared to wait as long as a week for an answer from the lender, some can take up to two weeks to respond to an agreement of sale.
• Have backup properties in mind in the event that the offer does not go through.
• Look over the property carefully, as most foreclosures are sold as is, where is. If there are items you want out, consider getting an estimate on removal costs, and factor that into your offer price.
• Be prepared to close in 30 days or less, the sooner the bank can get the property off of their books, the more attractive an offer can seem to them.
• Choose an agent that is familiar with the process. Inexperience in this or any other type of Real Estate Transaction can cause minor or major issues prior to or even after settlement.
• Know what inspections you want to do, even though the property is being sold as is, there can be hidden issues that can be very costly.