subject: Buying foreclosed property real estate [print this page] Buying foreclosed property real estate Buying foreclosed property real estate
Investing money in property real estate is the latest trend, which is chosen by many people as a lucrative and safe option to rake in the profits. Instead of investing in share market, people are now keener towards investing in land and other such immovable fixtures as they get good returns in future. When it comes to real estate bargains, a foreclosed property is the best bet to purchase.
A foreclosed property happens when the owner of the home or the property owner is not able to pay the mortgage fees on the property. As a result, he/she is forced to give up the land in order to pay back what is owed. Since foreclosure proceedings are often believed to be complicated, you have to be well aware of the legal procedures of your state before you attempt to purchase or acquire any foreclosed property. Before you venture into such a foreclosed property real estate, keep some points in mind.
Your first step should be to investigate if there are some foreclosure proceedings in your area/state. Foreclosed properties are generally listed under classified section of newspaper ads. So, you can check and locate them in newspaper under Auction Sales, Foreclosure Notices, or Sheriff's Sales. You can also approach some local agents and attorneys to show your interest in purchasing a foreclosed property real estate. Since these people are always on the look out for buyers of such properties, they can offer you some important leads..
Many local lending institutions and government agencies like the Federal Housing Administration, Veterans Administration or Department of Housing and Urban Development can also inform you about such kind of rental properties in your region. So, in order to have a track about these properties in your area, check with some of these institutions and agencies.
A very important step before you purchase any property is to determine its condition as well as the market value. When it is a disputed property like a foreclosed one, you have to be extra cautious about all the details of such a property. Remember to conduct a title search on the foreclosed property to determine the ownership, to identify potential problems and research any existing liens.
You should also obtain the sales prices of other such properties in that area and then compare the cost. This exercise will help you get the best price for the foreclosed property. A word of caution though - usually these properties are offered on "as is" basis at the foreclosure auction. So, you must examine the property well before making a foreclosure bid. This way, you will be saved from making a major monetary mistake.
Determining your finances is another very important step while dealing with property real estate. Apart from helping you decide how you will finance the property, such an exercise will also aid in checking out if any current loan can be availed of. You must also be interested to know the minimum bid for the property that the lender will accept. So, you will need to contact the trustee of the foreclosure sale property in order to inquire about the minimum bid.
You can make an offer on the foreclosed property by bidding at the foreclosure auction, or submit a sealed bid to a lender once the foreclosure sale gets over. In most foreclosure sales, you may find a redemption period during which the previous owners might pay fully and get the property back. So, you must check with the trustee and be careful to protect your rights while purchasing such real estate property.
