How to Find a Great Deal on a Foreclosure
Email To Friend | share this article | Posted by Anna on June 12th in General.
The housing market is still on shaky ground, and there are still several homes about to hit or already in foreclosure. Whether you’re an investor or a first-time homebuyer, you have the opportunity to find an exceptional value for your money.
The foreclosure process actually takes quite a while. After the homeowner stops making their payments, the bank has to wait two to three months before proceeding with the foreclosure process. During this time period, the borrower has the opportunity to reinstate their payments, stalling the process.
Buying the home pre-foreclosure occurs during the period when the homeowner still has the option to sell the home themselves. They may be quite negotiable as it is better for them to take a big loss than to lose the home completely. You can find homes in pre-foreclosure by utilizing online sources that research and provide the data for you, normally for a fee.
Buying the home on auction is another possibility. Marketing a foreclosed home can cost a lending institution up to $30,000, making it in their best interest to sell it before using traditional sales methods. These short-sale auctions are posted in the legal section of your newspaper, or on special lists your realtor can provide for you.
By negotiating with the lender, even after the home reaches the MLS as a bank-owned home, you can still find a good opportunity. You can negotiate with a bank just as you would any other seller, and they may be quite willing discount the price. Keep in mind that just because it is a foreclosure doesn’t automatically mean the house is a good deal.
Remember to take your time and have a clear picture of what renovations and additional investment the home will require before you make a quick decision.