Buying Foreclosed Homes

What are foreclosed homes?

What is the difference between purchasing a home at retail and buying foreclosure property?

If you choose to go this route you can contact a real estate agent to represent you. You may even want the advice and representation that comes from foreclosure attorneys as they deal with this sort of thing all the time. Some mortgage companies will not sell to individuals without the proper representation of an agent.

Your next step will be to find these foreclosed properties. You will have to do a bit of digging to find them. Below are some resources for getting started with buying foreclosed homes:

• Courthouse for public records on tax delinquent properties. Chances are if the taxes aren't paid, the property is either abandoned or foreclosed.
• FannieMae.com
• HUD.com
• Lenders or Mortgage Companies

When you do find property be sure to give it a thorough going over. Perhaps hire an inspector to make sure you aren't trying to buy something that needs major work (unless you want a fixer!). Properties that have been abandoned for a while may be in need of some serious maintenance.

A good agent will have a list of comparable or comp homes that have sold recently in the area. This list will be a good way to know if you are getting a good bargain on the home you are interested in purchasing.

Borrowing money from a lender requires a credit check even when that money is going towards buying foreclosed homes. Before you go forward with this make sure that your report is cleaned up and in good shape. The guidelines for purchasing a home are a lot stricter these days than in years past. You have to have a higher credit rating or you may need to put a larger amount down and have a higher interest rate.

Once these things are taken care of make an offer to purchase the property. Make sure about all the fees and penalties that are associated with the property. Often if the property is foreclosed there will also be back taxes that will have to be paid before the property can be released. Sometimes the lender will pay these fees - sometimes the buyer will.

If buying a foreclosed home is your goal you will probably have no problems finding one or several in your area. Just make sure to go over the above points before ultimately making that offer.

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