How to Plan for Buying a Foreclosure
Even though foreclosures are not as high on the market as they were just a year ago, they are still out there. And this is still a great time for investors to cash in on a great deal.
You want to make sure before you pour your money into repairs that the home will be worth it in the end. You need to understand the foreclosure process, the risks and the timing necessary to close the deal. Our agents are seasoned professionals knowledgable in all aspects of buying and selling foreclosed home. If you have any questions please don't hesitate to ask. (visit our Verde Valley real estate affiliate for more information for homeowners)
Once a property owner misses up to 3-4 payments the homeowner will receive a notice of foreclosure. If the home cannot be sold or paid up within a certain amount of time, it returns to the bank to which now they must sell and try to recoup the costs. You will be dealing with a bank throughout the process and it may take longer than a typical sale.
→ You can buy the home under a short sale which is actually opposite of what it sounds like. A process in which the bank accepts offers on the home this can take up to 6 months as there are numerous parties involved now. (Learn more on short sales from our Mercer Island real estate affiliate)
→ Another way to purchase a foreclosure is through an auction. But this requires cash on hand and is really only for experienced investors who buy and sell Moses Lake real estate as a living. It can be a great opportunity for a great bargain.
→ You can also buy an REO meaning a "real estate owned" property in which the auction was unsuccessful and the bank took hold of the property to sell traditionally. These home can run between 10-20% less than market value but will usually need some updates and repairs. It might be a good idea to bring a contractor along to find out what kinds of repairs are needed and what they will cost before you make a offer.
The main thought for successful foreclosure buying is to be educated, be thorough and be unemotional about the property you purchase. (Visit our St. George real estate connection for more on purchasing property)
For more info on foreclosed home in the Moses Lake real estate area submit this form and we can assist you with all your buying and selling needs.