With the economy slowly recovering, one interesting market trend is that people are snapping up foreclosed homes. Here are some interesting facts and tips that can help you with foreclosed home offers.
1) Check foreclosure listings frequently for opportunities. Scan foreclosed home listings in the area you are targeting. Do this as frequently as possible, since new offers may suddenly turn up that are much better for you. Also, check on nearby neighborhoods. You might get better deals even if the property is not exactly where you want it to be.
2) Get information on the neighborhood and the house. A fixer-upper isn’t so bad, but a decent neighborhood is priceless. If the agent says repairs have to be done, find out why. If repairs have been done, find out why repairs were needed in the first place. Check with local law enforcement if you have any doubts.
3) If you are interested, don’t haggle. With the way the market is, hesitation is a poor option. Offer the best bid you can put together immediately. Taken another way, if the offer is good, then thrash out the details as soon as possible. What is on sale now may not be after a few days.
4) Be prepared once you do get the house. As always, it’s best if you’re ready to deal with all the legalities and the paperwork. Review mortgage terms and agreements. Work out all possible snags. Find out even at this stage what your refinancing or loan modification options are in the future.
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1 Response
[...] Unless you know the local market well, and are willing to spend more money in possible repairs and construction, then it would be better not to invest in foreclosed homes. If you are in dire need of a home, do consider rented units first before this option. [...]
Posted on January 15th, 2010 at 9:21 am