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Published -
- May 2, 2020
- 3:45 pm
Are you looking to buy a foreclosure?
Foreclosed properties can be one of the best ways to get a cheap property, but understanding this murky world can be difficult. In this video from BiggerPockets, Brandon Turner (author of “The Book on Rental Property Investing”) shares the three different things people mean when they say “Foreclosure” and also offers four tips for finding great foreclosure deals!
How can online foreclosure listings help buyers in finding a foreclosed home?
When it comes to buying a home, foreclosures can often provide potential buyers with great value for their money. Foreclosed homes typically sell for well below market value, making them an attractive option for many buyers. However, finding and purchasing a foreclosed home can be a complex process. In this article, we’ll walk you through the steps you need to take to find and buy a foreclosed home.
Step 1: Understand the Foreclosure Process
The foreclosure process typically begins when a homeowner falls behind on mortgage payments. If the homeowner is unable to bring their payments up to date, the lender will eventually take possession of the home and sell it at auction. Buyers at these auctions are typically required to pay in cash, making it difficult for most people to participate in these types of sales.
Step 2: Look for Foreclosure Listings
One of the easiest ways to find foreclosed homes is to check online foreclosure listings. Websites like Zillow and Bank Foreclosures Sale offer searchable databases of foreclosed properties. These websites allow you to filter your search results by location, price, and other relevant criteria.
Step 3: Research the Property
Once you’ve found a foreclosure that interests you, you’ll want to do some research on the property. This can include visiting the property to assess its condition, finding out its history, and checking to see if there are any liens or other issues that could affect the sale. You should also find out if the property is occupied and, if so, whether the occupants are likely to leave willingly.
Step 4: Obtain Financing
Purchasing a foreclosed home typically requires cash or a pre-approved loan. Traditional mortgage lenders may be hesitant to lend money for a foreclosed property, so you may need to consider alternative financing methods, such as hard money loans or private lending.
Step 5: Make an Offer
Once you’ve found a foreclosed property that you’re interested in and have obtained financing, it’s time to make an offer. Keep in mind that many foreclosures receive multiple offers, so it’s important to submit your best offer and be prepared to negotiate.
Step 6: Close the Sale
Assuming your offer is accepted, you’ll need to close the sale. This typically involves signing a purchase agreement, transferring the funds, and transferring ownership of the property. It’s important to work with an experienced real estate attorney to ensure that the sale is completed legally and all necessary paperwork is filed.
Buying a foreclosed home can be a great way to get a deal on a property. However, it’s important to do your research and follow the necessary steps to ensure a successful purchase. By understanding the foreclosure process, searching for listings, researching properties, obtaining financing, making an offer, and closing the sale, you can find and buy the perfect foreclosed home for you.
