Purchasing a Foreclosure Property ?? Think again

Posted on November 13, 2007
Filed Under Real Estate

Considering the way the property market is moving it might be a good idea to invest in foreclosed properties but it can be a risky deal as well. Before you take any steps and invest your hard earned $$ in such properties it might be a good idea to read the great article from real estate guide on things to know before you buy foreclosed property

There are different stages of foreclosures. The first stage where the owner is notified by the authorities that their home may be foreclosed but the property remains intact. As it says buying at this stage can be tough and risky. The second stage is when the home is legally on auction which is again risky because their maybe unknown liens and/or repairs/expenses on the title. And you have to make the payments in cash. The third stage is post foreclosure where the home is REO “real estate owned” property by lender or bank. At this point comes the real estate agents with whom we are so familiar with. If the home has been in the market for a while you can make a better deal cause they are looking to get rid of the property as fast as possible.

Some important tips from the article:

Get full approval from the lender before entering negotiations to have better chances.
To know if you are getting a good deal or not you have to one thing in priority and that is research.
You can always ask the bank to pay for things such as repairs, closing costs etc.

Source: Zillow Blog

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