Foreclosure House For Sale – Public Auction
And Real Estate
house for sale – an avenue worth investigating when you are buying a home, as
either a primary residence or for investment purposes.
Foreclosed homes can be a viable investment
option, but as with all investment strategies, you need to undertake
thorough research and be aware of potential pitfalls as well as the potential
An informed decision may see you
actualizing a meaningful return on your investment and a great addition
to your financial portfolio.
House For Sale
What are Foreclosed Properties?
- The property is owned by a bank or financial institution.
- This has happened because the previous owners could not keep
up with the mortgage repayments.
- Many foreclosed homes are also known as real estate owned
- This happens when the bank owned property was not sold at
public auction and the bank then asked the real estate agents to try and sell
How Can I Buy a foreclosure house for sale or residence?
- You can either purchase a foreclosed residence at a public
auction or via a real estate agent.
- You can research your options for properties through
newspapers, online real estate listings and property websites.
- You can also search for repossessed properties by liaising
with banks and auctions houses.
- Note that there are two main types of auctions:
A public foreclosure auction and;
-The bank owns the property.
-But if the foreclosed home is not sold at a public
foreclosure auction, then the bank allows the property to be listed with a real
-You then make an offer to buy the foreclosed home from the
real estate agent.
- If the foreclosed residence is not sold while it has been
on the books of the real estate agents for a while, then the bank gives it to
an auction company to try and sell.
A public auction via and auction company
-You can make an offer to purchase online or in person at
most auction companies.
Keep in mind the following about auctions:
- Auctions can be very quick and they don’t always give you
much time to think about your offer.
- You may not always be able to view or inspect the proposed
property and may need to “buy” it from a picture and descriptions.
- You won’t realistically know the condition of the property
and you will not know what repairs and maintenance has been completed.
- If at all possible try and get an inspection from a building
- Ask them for information about the condition of the
property, an approximate cost for necessary repairs.
- If a property is too run down, it can be hard to get a loan
to finance the property.
- Some banks will not even give you a loan until all the
fundamental repair issues have been addressed.
- It is also a good thing to try and get a title search from a
title company to verify that no one else can claim debts against the home that
you are trying to purchase.
- This will help you to work out a fair and realistic offer on
- Remember to set your budget and then stick to it.
- Do not get caught up in a bidding frenzy.
Other financial considerations:
- Purchasing a foreclosure home can be affordable, but it can
also be difficult to negotiate.
- Often there are many levels of approval to get, including
bank approval or approval from the investor who owns the property.
- Financing can also be hard to get because one often has to
pay the full amount within a relatively short time frame.
- The price is generally set at a realistic market value to
get a quick sale with a fair price.
- Remember to consider that you may need a “good faith” deposit;
mortgage repayments; property tax and insurance when you decide on
- It can be an advantage if you are prequalified with respect
to how much you can actually afford to buy a foreclosed home for.
- It signals a real intention from your side as a prospective
- If you are planning to buy the foreclosure with the
intention of fixing it up and then hopefully quickly re-selling it, then be
aware of the property market.
- If the property market is suppressed it may be hard to
re-sell the house and you will be liable for the loan repayments.
- In this case, it may be prudent to use the foreclosed
property as an investment in rental property for a number of years and “profit”
from capital appreciation when the market climbs.
- If there are a lot of foreclosures in the market then it
tends to point to a declining market.
- Make sure that you have the financial safety net to weather
a slow or suppressed market.
Other contractual and professional considerations:
Confirm that the real estate agent, the attorney and the
financial institution all have experience in working with foreclosure house for sale - they need
to advise you on a realistic price range and to expedite the necessary
paperwork, legislation and legal processes.
Return From Foreclosure House For Sale To Money Saving Tips For Frugal Living
Return From Foreclosure House For Sale To Teaching Personal Finance