Closing on a Foreclosure? Keep these Points in Mind

Are you interested in buying a house after it’s been through foreclosure? If so, you’ve set off on a path that’s a little different from the standard home buying process, therefore, it is smart to get acquanited with the proces and do your research beforehand. Here’s a few tips to help you prepare:

1. Pre-approval for a mortgage can be a big plus. After a foreclosure, sellers want as much certainty in the sale process as possible.

2. Foreclosed homes come as is, and the buyer will be responsible for all repairs. That could mean you have no recourse if there is undiscovered damage or health risks in the home.

3. Due to changes in condition of a vacant home, your inspected value may not match the seller’s valuation. This can be an obstacle to finalizing your mortgage, so be prepared for delays.

4. Search foreclosure lists, not real estate listings. Foreclosed homes may not appear as available real estate for some time. By looking at foreclosure lists, you can see what’s currently available and make contact with agents who may know of other recently foreclosed properties.

5. Don’t assume that banks or other lenders are eager to sell foreclosed properties at a big discount. The seller’s goal is to recapture most of the lost investment in a home.

Whether you purchase a foreclosure, standard sale or new home, we are happy to help you with your mortgage and home buying needs. To learn more, contact Avis Lending.

 

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