How To Buy A Foreclosure Home
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by: DavionWong
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It is the dream of every young family to own a beautiful and spacious home. As most houses are not within the reach of these young families, to buy a foreclosure home is a alternative that should be seriously considered. While it can prove to be a really good bargain for you (sometimes up to 40% off the original value of the house), you do need to know some tips to buy a foreclosure home.
There are 11 basic steps to buy a foreclosure home.
1. You need to know that the reason why the property is sold. These houses are all seized by the lenders from their previous owners who are unable to afford staying there anymore.
2. Always do a preliminary valuation of the property. The lenders and banks are often more than happy to let go of the house at huge discounts. It can be 20 to 30% off the original value. Check out how much other houses in the neighbourhood are sold for and you have a good gauge.
3. Deal only with experienced property agents specializing in foreclosed properties. Not any tom, dick or harry knows how to deal with such real estate.
4. Conduct a search and browse through major property magazines, newspapers and classified ads online and offline. Call up the property lenders, government agencies such as Fannie Mae, Department of Housing and Urban Development (HUD) and so on for foreclosure homes to purchase. A check through public records such as the local county clerk's office for foreclosure notices would be helpful.
5. Privately inspect the home. Check its exterior and if you have the chance, enter the house and scrutinize it properly.
6. Send your agent to do a study on the fair value of houses within the neighbourhood before you buy a foreclosure home. You want to be sure that the price you are paying indeed enjoys a significant discount.
7. Make sure you check your credit report and ensure all your personal details are properly updated. This is also the time when you also confirm your finances are sound and you can qualify for a mortgage application.
8. Get your agent to liaise with the seller's broker to make an offer to buy a foreclosure home.
9. This step is absolutely necessary. See if the property is cleared of all its liens and who is liable for the settlement. Common liens can include the unpaid property taxes.
10. Make arrangements to have a full house inspection done with the permission of the seller. It is your obligation to foot the bill so, please do not argue with the seller about this.
11. There are different forms to fill and paperwork to handle when you buy a foreclosure home. This is understandable as it is not like any normal house you are purchasing.
With these useful tips, you are better informed than other buyers. To learn more about how to buy a foreclosure home near you, read up my property blog now.
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