The housing market has provided a great opportunity for savvy home buyers to find properties below market price. With over one million homes that have been foreclosed in 2008 there are great buying opportunities in almost every major market in the country.
If you are in the market and considering purchasing a foreclosed or bank owned home, here are some pointers that should help you in this process:
- Become pre approved up front and find out if the lender you are working with has any specific guidelines that they follow in dealing with foreclosed properties.
- Work with a professional real estate agent. Foreclosed homes are almost always sold through a real estate company and you will need to work with an agent to be able to inspect the property
- Be prepared to offer above the asking price in certain markets where a bank is trying to create multiple bids
- Make sure the home is not in disrepair and will pass an appraisal process if you need a mortgage loan to finance the purchase
- Don’t expect a bank to take a contingent offer subject to you selling your home
- Save for a down payment, most lenders who own the home will prefer to work with a buyer who is putting money down or into the transaction
- Don’t rule out buying a non foreclosed home, there are plenty of great deals in this market!