subject: Buying Us Foreclosed Homes [print this page] For the last 4 5 years, when the pate of foreclosures across the US has increased, it has become lucrative for first time buyers as well as investors to purchase such homes that are available at very low prices. In normal times, the same properties would be available for really high prices that could make them unaffordable for many of the homeowners. There are literally millions of homes that are available and can be bought at discounted prices.
In US, 90 days are given to the homeowner to pay back the outstanding mortgage payments and stop the foreclosure process. In cases, where the homeowner is facing financial problems, the homeowner is unable to do this and the home is repossessed by the banks and the lenders. In cases where the homeowner is unable to pay back the outstanding, they are sent a notice of trustee sale, where the homeowner needs to be present when the home is being sold. Even at this point, the homeowner can also bid for their home.
The process off buying foreclosed homes can be quite complicated and for those that are making the purchases for the first time, should enlist the help of professional real estate agents that can help them. There are many real estate agents are have the experience of purchasing and selling the foreclosed properties. To handle the legal aspects of the transaction, its important that the investor should also engage a good real estate attorney. This will ensure that the investor will get a clear title for the properties, without any liens that are attached to it.
Before purchasing the property, its important that some background research should be made. This would involve getting a building inspector to physically check the property. The inspectors would be able to ascertain whether any repairs are required and the cost for the same. The inspector will also be able to gauge whether the property is structurally sound or not. After going through the house with a detailed eye, they would be able to give their advice. Based on the inspectors report, the investor / buyer can judge whether this would a good property to invest in or not.
The property should also be judged for a clear title. This means that the property shouldnthave any outstanding liens against it. All utility bills should have been cleated and if there are any lens, then the previous owner should clear the liens before selling the property. The value of the home is also dependent on the neighborhood. Homes in good areas will cost more as compared to other areas. Plus if the neighborhood has better facilities such as close proximity to the schools, hospitals and shopping centers, then the value of the homes would be more. Low crime rate is also a factor that should be considered by the investor / buyer when purchasing the home, a high crime rate would lower the resale value of the property. Therefore keeping all of these considerations, an investor should purchase foreclosed properties.
