Foreclosures can be a great way to save loads of money when buying a home. In this article, we will give you the basic information that you need to know about foreclosures.
A foreclosure occurs when the owner fails to keep up with their mortgage payments and the lender takes over the property. Lenders will assume ownership of the property and aim to sell it quickly, usually at a great discount. That’s where you come in. Buyers who know how to work the foreclosure game can purchase a house for less than it is worth, and at a much lower price tag than purchasing a home from a typical seller or agent.
Buying homes through foreclosures can get complicated. There are a few key things to know before you decide to pursue purchasing foreclosures:
- Be prepared for “as-is” condition: Unlike a typical home purchase where the sellers work to have the home in top shape for potential buyers, foreclosures are purchased
“as is”. Be prepared to possibly clean up a mess and/or make some repairs.
- Have financing in place ahead of time: Foreclosures can get competitive, so it is essential that you have your financing in place before making an offer.
- Hire a specialized agent: Foreclosures are unique to other methods of purchasing a home, so ensure that you hire an agent who specializes in foreclosures.