What do I do after I buy a foreclosed home?

Question

When I was looking to buy my first house I talked to my real estate agent about buying foreclosed homes and he told me to be careful. He was saying something about foreclosed homes not having a clean title. I am still interested in buying foreclosed homes but I don't want to dive in head first without some base knowledge. What do you guys do with your foreclosed home after you buy them?

Tom Gimer · Answer

@Josh Fernandez It's not what you do after the sale... the most important work (other than obtaining possession) is done before the sale. Learn local lien priority. Learn how to do a title, judgment, lien search. If you can't do this you need to pay somebody to do it for you.

Learning as you go is not a good strategy for foreclosures.

Jack V. Ospina · Answer

@Josh Fernandez When you buy a foreclosed home you still have to go through the traditional closing steps as if you were buying a traditional sale. This means the title company will do due diligence and title searches, lien searches, violations to make sure you have a clean title. If you were buying a foreclosed home through the court foreclosure auction then you should be careful and need to do due diligence days before the auction to make sure your buying the first lien which is the mortgage. Foreclosure auction is typically cash only.

What do I do after I buy a foreclosed home?

What do I do after I buy a foreclosed home?

Most Popular Reply

3 Replies