Call (818) 665-4528 • NMLS: 233972

Blog Post

5 Creative Ways To Buy A Foreclosure

Buying a foreclosed home is easy, right? After all, they sell for pennies on the dollar, right? Well, that could be a false assumption. Buying a foreclosed property appears easy on TV, but in reality, it can be overwhelming. 

Foreclosure sales continue to decline in the market from 38.6 percent in 2011 to 14 percent in 2017 but ticking up a bit in 2018 according to Attom Data Solutions, a national property data company. As foreclosure sales drop, competition for these properties become stiffer and more complex. And as home prices increase in most cities, buyers often turn to foreclosures as affordable alternatives for landing their dream home

Foreclosures usually occur when homeowners can no longer pay their mortgages and the mortgagees seize the properties. Once former owners vacate the properties, lenders typically put it on sale at discounted price or auction to the highest bidder. 

Foreclosures give homebuyers the opportunity to get great deals. While foreclosures can save you thousands of dollars, it may come with risks. Having a stomach of steel can help when pursuing a foreclosure.  

5 Creative Ways To Buy A ForeclosureTo mitigate the risks involved, keep the following hacks and tricks in mind.  

Budget Carefully 

Don’t allow a small price tag to entice you into a quick deal. Ask yourself the following:

  • Do you have sufficient dollars for extensive repairs? 
  • Do you have a team ready for any required repairs or are you handy at doing them yourself? 
  • Can you find a tenant if you intend to rent?

If you conduct thorough research, you’ll minimize the risks. 

Get A Home Inspection 

Though foreclosures are usually sold “as is”, you need to know the property deficiencies. The home seller can allow you to bring in a competent home inspector. Your inspector will give you a list of what the property lacks and the cost estimates needed to complete the renovations. You may even want to hire a home inspector after purchasing a foreclosure just to get a thorough review of the property.

Ask For Vacancy Duration  

Ask how long the house remained vacant. In most cases, long vacancy means more damages. For example, plumbing seals may dry out, bugs get into the house and sewer gases back up. 

Don’t Ignore The Landscaping 

Neglected landscaping contribute to house deterioration. Tree seedlings grow roots into the foundation and vines crawl into the windows. Small trees can also mess up pavers, and dead branches can break and crash into the house.  

Be Cautious With Auctions 

Although auctions are common with foreclosures, it’s best to avoid them. And if you can’t, be vigilant when bidding. Competitive bidding can raise the value so high that you end up losing money after the cost of repairs. 

It’s always best to work with your trusted local real estate professional to find foreclosure properties. They are experienced in determining the quality of the properties and can help you through the tenuous foreclosure purchase process.

Another key partner is your trusted mortgage professional. If your good credit and pre-approval are in place, you will be on your way to making an offer as soon as the right property comes along. 

15 Comments

  • Wow, fantastic weblog layout! How lengthy have you ever been running a
    blog for? you made running a blog look easy. The full glance
    of your web site is magnificent, let alone the content material!
    You can see similar here e-commerce

  • Wow, amazing weblog structure! How lengthy have you been running a blog
    for? you make running a blog look easy. The overall glance of your website is
    excellent, as neatly as the content! You can see similar here ecommerce

  • First of all I would like to say fantastic blog! I had a quick
    question in which I’d like to ask if you don’t mind. I was
    interested to know how you center yourself and clear your
    thoughts before writing. I’ve had a tough time
    clearing my mind in getting my ideas out. I do enjoy writing
    however it just seems like the first 10 to 15 minutes are usually lost just
    trying to figure out how to begin. Any ideas or tips? Cheers!

    I saw similar here: Dobry sklep

  • Hi! Do you know if they make any plugins to assist with Search Engine Optimization? I’m
    trying to get my blog to rank for some targeted keywords but I’m not seeing very good
    success. If you know of any please share. Appreciate it!
    You can read similar text here: Sklep internetowy

  • Hello! Do you know if they make any plugins to help with SEO?
    I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good
    success. If you know of any please share.
    Appreciate it! You can read similar blog here: Sklep internetowy

  • Hello there! Do you know if they make any plugins to help with
    SEO? I’m trying to get my blog to rank for some targeted keywords but I’m
    not seeing very good gains. If you know of any please share.
    Thanks! You can read similar blog here: Sklep internetowy

  • Hello! Do you know if they make any plugins to assist with Search Engine Optimization? I’m trying to get
    my blog to rank for some targeted keywords but I’m not seeing very good results.
    If you know of any please share. Thanks! You can read similar text here: Sklep online

  • Good day! Do you know if they make any plugins to help
    with SEO? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good
    gains. If you know of any please share. Appreciate it!
    You can read similar art here: Ecommerce

  • Good day! Do you know if they make any plugins to help with SEO?

    I’m trying to get my blog to rank for some targeted keywords but I’m not
    seeing very good success. If you know of any
    please share. Cheers! I saw similar article here: Backlink Portfolio

  • Hey there! Do you know if they make any plugins to help with Search Engine Optimization? I’m trying to get
    my blog to rank for some targeted keywords but I’m not seeing very good
    success. If you know of any please share. Thank you!

    You can read similar art here: Backlink Building

  • Hello! Do you know if they make any plugins to help with Search Engine Optimization? I’m trying to get my website to rank
    for some targeted keywords but I’m not seeing very
    good results. If you know of any please share. Kudos! I saw similar article here: GSA Verified List

  • Hey there! Do you know if they make any plugins to help with
    Search Engine Optimization? I’m trying to get my website to rank for some targeted keywords but
    I’m not seeing very good gains. If you know of
    any please share. Cheers! You can read similar blog here: Backlink Portfolio

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts