The Five Laws of Buying Foreclosure Homes

1. Above all else, do your research. Buying a foreclosure can get you some great deals, but not all foreclosure properties guarantee savings. You have to be willing to search out the properties with the best chance for potential savings by fully examining them. Be sure to call auction or sales trustees and get all the information you can about the home before you make any decisions. Often times there may be certain things wrong with the home that a listing will not show.

2. Before you decide to pursue a foreclosure you see listed, make sure it’s being sold through a method that suits your needs and abilities. There are a lot of different kinds of foreclosures out there, from bank owned homes to pre-foreclosure properties, and choosing the right method of purchase is often just as important as choosing the right property. Some methods offer advantages that others don’t, and depending on your personal situation, others may present disadvantages. For example, pre-foreclosure homes, though they offer great deals, usually require more work. There is often a lot of cat-and-mouse phone calling involved, a great deal of bargaining, and also plenty of face-to-face meeting time to work out and close deals. If this sort of commitment is impossible for you, you’d probably be wise to consider a different type of foreclosure. You want to make sure you maximize your chances of getting the best deal possible, and putting in only half the effort required, whether you’re buying pre-foreclosures of government homes, won’t get you the kind of savings you want.

3. Perform a title search. Often times neither listings nor trustees can tell you the whole story. Sometimes foreclosed homes come with additional liens held against them by tax collectors or utilities companies. A full title search will reveal if any such liens exist. Either consult a titling agency locally or find one online. It only requires a simple phone call, but the results could save you thousands of dollars.

4. Get an independent appraisal. Most listings come with appraisal values, or if not, they are usually provided by the trustee of the sale or the local Sheriff’s office, but get one of your own just to make sure. Hire an unaffiliated, independent appraiser to inspect the house and give you an idea of its real market value, just to be sure.

5. If you have doubts, inspect the home yourself. There’s really no better way to understand what you’re buying than to actually see it. This may seem obvious, but you’d be surprised at how many people try to buy foreclosure homes based on listings alone. Inspecting a home foreclosure can give you an idea of its true condition, as well as allow you to make estimates about any repairs that will need to be done, or any maintenance you’ll need to take care of before it’s habitable. These costs all factor into your overhead when you buy them home, so be sure to calculate them exactly. If you feel the need, arrange to have a contractor join you and provide an estimate on any repairs.

The more you know about a foreclosure, the better you can calculate how much its true value is after factoring in costs and approximate market values. Remember, there is a lot out there these days, so don’t be afraid to search out the best potential values. Follow these steps to make sure you’re making a decision to buy based on the best available information, and you’ll greatly increase your chances of making a smart investment.

8 Undisclosed Hazards When Purchasing Foreclosure Homes

Purchasing a foreclosure home may appear to be a deal of a lifetime. What could be better than buying a home for a portion of the market value? Many individuals believe that some of these homes may even be too good to believe. Although these homes may appear to be the deal of a lifetime, there are many underground hazards in purchasing these homes that have been disclosed by a foreclosure defense that many individuals are not aware of. When pursuing the course of purchasing your new home, be aware to look out for some of the obscure costs.

  • Property Destruction

Although individuals have lived in that home, generally when they have lost their home they purposely destroy their home. Some individuals may do this out of anger and frustration and others because of carelessness once they recognize their home is going to be lost after so many missed mortgage payments.

  • No Upkeep

Generally speaking, if the homeowner was unable to manage their mortgage payments, they usually did not have the financial stability to perform routine maintenance on the home.

  • Possibility of Uncleanness

Any property that is left uninhabited for a momentous period of time has the possibility of being unclean. This happens either from the prior homeowners or normal depreciation to the property due to the fact that is was left unoccupied with nobody to look after the home.

  • Unwanted Renovations

There are times in which the homeowners prior to losing their home were renovating a part of the home, which then causes you to be stuck with the project that is half finished.

  • No Electricity

If the prior homeowners could not afford to pay the mortgage there is a high probability that the electricity will also be unavailable, making it difficult for you to view the property in which you are purchasing.

  • Personal Belongings Left Behind

Many individuals leave personal belongings behind due to the fact that they do not have a location to store them, or have been locked out of the house prior to having the ability to retrieve their items.

  • No Disclosure

Due to the fact that no individual has lived in that home because the owner is a bank, they may are unaware of the problems that may be associated with the home and have zero obligation to discuss them with you regardless if they did have any knowledge on the issues.

  • Liens and Judgments

There are times where the property is associated with titles overburdened by judgments or liens that you may have to pay off in order to close the deal.

Although purchasing a foreclosed home may be a great way to save money, it is important to look at all of the possible costs prior to making the final decision. Calculate all of the expenses you may be facing in order to determine if you are actually saving rather than costing you.

Free List of Foreclosed Homes – How to Search Foreclosures Without Paying Membership Fees

Finding high quality free foreclosure listings is one of the most challenging parts of getting started with foreclosed homes. Fortunately, there is a easy way to browse all of the currently available homes in your area, on the biggest, most trusted foreclosure websites, without paying for any membership fees. Read on and you will be a foreclosure pro in no time!

How Do I Find Foreclosures for Free?

If you are thinking about buying a new home, or investing in the real estate market, you will definitely want to check out a list of all your local homes in foreclosure. These foreclosures are owned by banks, which have taken possession of the property due to the previous homeowner’s inability to keep up with their mortgage. Once the bank has possession of the home, they will attempt to quickly sell it, often at a price that is up to 60% below market value.

The best route for finding these deals is to search online foreclosure listings to see what is available in your area of choice. These websites will commonly have millions of home listings, in all cities, states, and neighborhoods across the country. Browsing these websites is by far the best way to locate all types of foreclosures.

How to Access Foreclosure Listings for Free

The main factor that keeps beginners from accessing these websites is that they all charge a monthly membership fee to view their listings. So how can you view these listings without paying for a membership? Well, luckily most of the major foreclosure services let you browse their sites for free by signing up for a 7-day trial membership. This will give you full 100% access to all listings, prices, addresses, and photos for a full week, allowing you to satisfy your curiosity and decide if foreclosures are right for you.