Home Buying

Your Guide on How to Buy a Foreclosed Home

By August 3, 2018 No Comments
how to buy a foreclosed home

If you want to save money on buying a home, then read on to find out how to buy a foreclosed home.

Are you ready to buy real estate?

Buying real estate is not cheap. However, you can save some money by buying a foreclosed home.

If you’re not sure exactly how to buy a foreclosed home, you came to the right place.

In this guide, we’ll help you understand the process. Keep reading to learn how.

What is Foreclosure?

A foreclosure process involves a bank, mortgage company, or lending institution taking the property back from a lender who has failed to satisfy a debt.

The bank is within its rights to sell the property from the owners to satisfy the debt.

Owners who must surrender their home to foreclosure lose rights and the investment they’ve put into the property. This process will leave a negative mark on a person’s credit score.

When Should You Buy a Foreclosed Home?

You might be wondering why or when it would be a good decision to buy a foreclosed home when you can buy a home in a better condition.

Not all homes up for foreclosure are in a bad condition, some require few repairs. However, since owners don’t have the funds to pay for repairs and maintenance, a majority of foreclosed homes do.

If you want to get a significant discount on a home and are not afraid of a fixer-upper, foreclosure is the way to go.

Pre-Foreclosure vs. Foreclosure Auction

You can purchase a home in the pre-foreclosure process if you approach the owner before the home goes into an auction.

If the foreclosed home hits the auctions

it will go to the highest bidder. The bidder also has to pay cash.

Research the Are You Desire

Contrary to what some people might believe, foreclosed homes are not all located in rundown neighborhoods. Chances are if you’re patient, you will find a foreclosed home in your desired area.

Pick a neighborhood or area you like, and begin the search.

Get the Help of a Real Estate Agent

Getting the help of someone on the inside will guarantee you find the right foreclosed home. Find a real estate agent who will help you in the process.

Make sure the real estate has experience working with foreclosed homes. An experienced realtor can make the process run a lot smoother.

That being said, you should still continue searching on your own.

Consider the Repairs and Costs

Buying a foreclosed home will have a cheaper price tag than a brand new home or a non-foreclosed home.

While you might be saving money in the price of the home, you will still have to pay for the repairs.

On average, it costs anywhere from $12,000 to $17,000 on repairs to a foreclosed home.

How to Buy a Foreclosed Home: The Bottom Line

Buying a foreclosed home doesn’t mean you have to settle for a rundown neighborhood. However, how to buy a foreclosed home requires to get the help of an agent, decide when it’s right for you, and do your own research.

Are you in the Agusta area and are ready to buy or sell your home? Let us help, contact us for more information.