Buying a Foreclosure

Are you considering purchasing a / home?  Have you thought about buying a foreclosure property?  Many people have.  There are several foreclosures on the market right now (although the numbers appear to be dwindling).  There's no guarantee that buying a foreclosure in / means you'll get a better bargain than going the traditional route, though.  Here's a basic rundown on buying foreclosed properties.

The most common way to buy a / foreclosure is at auction.  This can also be the riskiest.  Typically, bidders aren't allowed inside the property before the auction begins.  That leaves out the possibility of inspecting the interior condition of the home.  There may be serious issues inside that can cost thousands of dollars but you won't know until you take ownership of the property.  When you buy a home at a foreclosure auction, you literally get it "as is".  Also, bidders don't usually have the opportunity to research the history of the property to make sure that there are no tax liens or other issues that would avoid a clear title.

You may be surprised to find out that most foreclosure auctions end up with no winning bid.  Keep in mind that most foreclosed / homes up for auction are actually worth less than the amount required for a minimum bid.  When this happens, the mortgage company takes the property back in its possession, may perform a few repairs (but not always) and will then sell it as an REO (Real Estate Owned) property.  With an REO, a potential buyer has the opportunity to research the property's history as well as perform any inspections they wish to pay for on it before putting in an offer.  Unlike traditional home sales, a bank may require you to use a specific escrow company, even if it's different than what you or your real estate agent have already decided to utilize.  Also, banks aren't big on negotiating a "deal".  They are usually selling their REOs to recoup their costs.  So, giving them a lowball offer won't necessarily go over well.  This is where an experienced, licensed real estate professional comes in handy.

When it comes to buying a foreclosure, expect the unexpected.  There are several REO properties on the / real estate market that I would be happy to show you.  Whether you purchase a home through a foreclosure/REO situation or via traditional means, there is no better sense of accomplishment than when you sign the papers and are handed the keys to your very own piece of the American dream.  Feel free to contact me any time you are ready to buy or sell your / home.

Originally posted on my Northern Virginia Homes real estate blog here: http://northernvirginiahomes.net/2012/01/05/buying-a-foreclosure/.