Oh if life was just that simple to get my dream home for less and much less through a foreclosure sale. Does it not make sense if you are going to buy a home that it would be a foreclosed home? Yet, better buying a home from a seller who is in foreclosure to save him from going through the process. Well, I sure wish it was that easy. Read on about how to do this:
All the Internet is a buzz about foreclosures. I am sorry, but foreclosures have been popular since I first started in Real Estate back in the 80's. People or investors have been buying them up like crazy, renovating and then place them back on the market and becoming rich. Those investors are now writing books on how to become a millionaire with no money down. Things have changed since the 80's on how to buy foreclosures, but the deals are still there.
Buyer Beware Should be Stamped on Every Foreclosure Sale:
A first time home buyer cannot and I mean cannot show up on the courthouse steps and purchase a home without legal representation. First you must be willing to pay cash for the home in many states such as California and second you have to be willing to satisfy all the liens against the property. Most lien holders will show up on the steps also to get their money.
A smart way is to have a title report before going to the auction and see exactly what is showing against the property. Then you need to evict the owner of the property, which is not that easy to do. After you evict the tenant, you need to make the repairs done by the angry tenant. The costs are mounting here and your once very good deal for your dream home, just may end up costing you more than one that is currently on the market.
Where to Look for Foreclosures:
There are a number of ways to buy foreclosures. As I have discussed above, the best deals are on the court house steps, but this is also the most dangerous way to buy. Understand that if you purchase through a bank or other government owned place the price will be more. The good part about most foreclosures on the market is that the tenant will be evicted at this point and some repairs will be made except for HUD homes. They do allow you to finance the repairs necessary on the home.
The places that have foreclosures are:
1. HUD homes through sealed bids.
2. FHA homes
3. Fannie Mae and Freddie Mac homes
4. VA homes
5. Bank REO's (also known as the loss and mitigation department)
6. IRS and the Marshall's Office
7. Local real estate office
Websites That Have Foreclosures for Sale:
One of the main websites to search for all listed foreclosures is Realtor.com. They are the largest researched site on the web. Every home that is listed on the MLS (multiple listing service) will be available to them and no other place will have more. There are many sites that advertise foreclosures and they charge for their service. This is not necessary and most of the time a rip-off.
When searching for your dream home it is best to contact several real estate agents and ask them to search for the best deals and to call you when they have what you are looking for. It is not necessary to commit to one Realtor, but commit to the one who brings you the best deal. Contact your local title company and ask for a list of all foreclosed homes. Once you get this list start sending out letters to the homeowners offering to buy their homes.
Many foreclosed homes can be bought with little money if you are dealing directly with the homeowner. Many times you can agree to assume the loan or do a lease on the property. With more and more foreclosures everyday, creative financing is ever popular. Sad to see a family lose their home, but if you can help them out of a bad situation it is better. Remember to always check with an Attorney before agreeing to any deal if you are going through a private owner.
No comments:
Post a Comment