Now-a-days the word “foreclosure” has become a very common word to people. If I may boldly say, it has become part and parcel to the real estate industry. Foreclosure is like a double edged sword. Sometimes it is a blessing, sometimes it is a curse to bear. Well, I always try to be positive minded, so why don’t we look at what is good about foreclosures? Yes dear readers, in this article we will delve into the aspects of buying foreclosure homes.
A couple of days ago, one of our friends got married. They are young couple, so it is not likely that they will buy a brand new home. However, an alternative option that is available for them is to buy a foreclosure home as a starter home and then when they have built up some equity in their first home and are more established, they can look forward to buying their next move-up home. This couple is not alone in their situation. Like them, thousands of people have the same need.
So, what should they do? Should they rush into buying their dream house? I would strongly suggest that they not chose that route. Before doing anything you should investigate, observe and judge the home you intend to buy. Let’s have a close look at some points that would help in this evaluation process.
- Explore carefully-Think carefully and then think again. Does the home in question meet the current needs for you and for your family?
- Hire an attorney to complete a title search – This is critical to make sure that when you purchase a foreclosure home that you are the only person who has the ownership claim.
- Checks for liens –Most liens are wiped out with a foreclosure, except for UCC claims. So, be sure that you check to find out if there are any UCC liens against the property because you will be responsible for paying them. So be sure to check this out and have the seller pay the claim prior to closing.
- Know how good of a “bargain” you’re getting – foreclosures are sold “as is” and in many cases you will have a limited amount of time to complete your inspections. Be sure to hire the appropriate professionals to ensure that you verify the real condition of the property before finalizing the deal!
- Stick to the rules- When you choose to purchase a foreclosure, you agreed to play by the bank’s rules. Follow the rules that govern the purchase of your chosen foreclosure home so that you will have a pleasant buying experience.
- Check your credit score- The better your score, the lower the amount of money needed for your down payment. And also, you may be able to finance all of your repairs without any out of pocket expense (see my previous article on FHA loans).
Be mindful of all of the above mentioned points! Take your time and follow a step by step process to make sure you have the best possible information to make the best possible decision for your purchase. This may be tiresome, and some aspects may even be boring, but in long run you won’t be a loser!
Happy house hunting! Let us know if we can serve you! www.kbir-holdings.com
Andrea Williams