It’s no secret that the housing market is a bit high right now. With a shortage of homes on the market and the current housing demand making the asking prices rise, you may be considering other, less expensive options. Foreclosures, for example, are a less expensive option. Foreclosures are reasonably priced properties that have been seized by the bank because the previous owners did not keep up with their payments. So in turn, they can sell these properties for a lesser price than if the original homeowners were to sell it. If you’re new to exploring the foreclosure option we’re here to help, so read on!
When searching for a foreclosed home near you, or a bank owned home near you, the process is a little different than searching for a home on the market. Foreclosed homes near you can be found in a number of different methods, searching bank websites, as banks often list their foreclosed properties online, visiting your town office - they usually are up to date on the foreclosed homes around town, and working with a real estate agent. A real estate agent would be a great resource as they can give you specific details and info on the home, as well as represent you if you choose to purchase the home.
How to Prepare:
- Like any property, you will enlist a Realtor to help with the buying process, especially since buying a foreclosed home is a bit different. Your Realtor can answer any of your questions, like how long the home has been available, background info on the property, etc.
- Keep in mind that when the negotiating process starts, you’re not dealing with a homeowner but with a bank or a mortgage company. When dealing with a homeowner, they are more likely open and prepared to negotiate the price and willing to make repairs to the home before it sells. However, the bank or mortgage company are more set on the “as is” contingency, so it’s unlikely to get a lower price or maintenance done.
- Foreclosed homes may sit vacant for quite a while, so unlike other homes on the market, regular upkeep may have not been done. Also, it’s not uncommon to see poor conditions or even damages to the property caused by the previous owners who were unhappy to lose their home to the bank.
- You’re more than welcome to schedule an inspection of the home, however this will be for your own personal information only. Like mentioned before, the bank is not interested in negotiations or repairs to the home if they’re needed. You can ask, but it’s most likely a “no”.
- Your finances will be considered a little more heavily than usual, you want to look “risk-free” to the bank as they don’t want to foreclose on the same property in the future. This is where a great credit score will be a big selling point for the bank. Also, pre-approval for your loan is needed and in writing before your offer will even be considered.
- Be patient. The sale of a foreclosed home can be a long and drawn out process as there is no rush on the seller’s end. When dealing with a bank, they tend to keep to business hours, so you shouldn’t expect someone to be working on the weekends or swift responses to your questions. However, don’t let this deter you from buying a foreclosed home, it all comes together in the end.
Buying a foreclosed home can be a great and affordable option for you and your family. If you have the time, patience, and are represented by a reputable and experienced Realtor. If you’re looking to purchase or look into foreclosures near you, contact a Verani agent or visit Verani.com for more details!