To purchase foreclosed homes requires some preparation and research. While it may be true that there are great deals to be made on the market, this does not preclude diligence and caution. The only way to ensure success or minimize risks is to be informed and updated on the industry.
Indeed there are safe ways to purchase foreclosed homes and most of them will come from the initiative of the buyer.
Manage Your Expectations
Buyers should expect that the property will need repairs. The previous home owner who has defaulted on their mortgage obligations would most likely not have the resources to maintain their property. Some of the problems you can expect are the normal wear and tear like stripped painting and poorly managed lawns.
If you expect this, then you can prepare for it before hand. Make sure you are able to have the property inspected by a professional. These home inspectors can give you an accurate assessment of the cost of repairs.
A Well Turned Out Research
You have to set aside time to conduct your research. Search for homes through various resources like newspapers, county court houses and the Internet. The wider your search, the better your chances are of finding a good bargain. You can even drive down neighborhoods and look for foreclosure signs in front yards.
You should also research your own financial capability. Walk up to your bank and ask to be pre-approved for a home loan. This pre-approval will consider you credit score and your current income. You will know how much you can borrow and this information can guide you in your search.
Sellers will look favorably upon your offer if you can show your serious intent to purchase foreclosed homes as well as your ability to pay for it. Do not stop at just one property and have two or three back-up homes so that when someone beats you in your first choice, you have other options.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.