Are You A Good Candidate For Buying A Foreclosed Property?

1. Do you have an open mind as to what you are willing to look past when shopping for a bank owned home listings? Can you see past the problems to what the home could be? Most foreclosed homeowners in trouble have not maintained their homes for long periods of time which causes problems in the home that the homeowner will have to correct. Banks don't typically accept repair lists. You are buying "as is" some homeowners are angry that they lost their home and will vandalize the home out of spite. Not every bank owned property is in terrible condition but most are not in pristine condition and if they are you will pay fairly close to fair market price.

2. Are you a handy person or have the capital to hire someone to do the repairs most bank owned homes are going to need?

3. Have you already spoken to a mortgage professional and know that you are qualified to buy a home and what price range you can buy or proof of cash?  The bank is not going to sell the home to a risky buyer! Get your finances in order before you ever think about bidding on a foreclosed property.

4. Do you have down payment money and at some of the closing costs you are going to need? Sometimes banks will pay some closing costs for the buyer but don't count on it.

5. Do you have to get a FHA  loan? If so you need to know that those loans the home must meet FHA standards as to condition.  The bank will rarely bring the home's condition to those standards. You will have to find a foreclosed home that will pass or have enough down payment to go with a conventional, alternative financing, or cash.

6. Plan to stay in the home for at least 5 years? Be aware that when you buy a home in foreclosure you are bringing the property values down in the neighborhood and that will effect the selling price  for years to come.  (Experienced investors may not  follow this guideline)

7. Don't make the mistake of thinking that you are going to find a home for pennies on the $$$that you see advertised on websites and TV commercials unless you live in the hardest hit states, this area is not one of those states.  But you can expect to pay considerably less than fair market price in most cases on bank owned listings. 

8. Be prepared to put up an earnest money deposit of no less than $500.00, in most cases 1% of offer price & the bank may ask for more than that if they think you are a risk for walking away from the deal.

Form a relationship with a real estate professional who has experience in foreclosure sales and will be able to protect your interests in the purchase of  this type of real estate purchase, the bank will hold your feet to the fire, you can lose your earnest money deposit if you don't abide strictly to the terms of the contract.

I have years of experience selling foreclosures and can expertly guide you every step of the way.

Sally Morris

Office (864) 302-9028
Cell (864) 344-1728
 Call or Text