How to Buy a Foreclosure

The lending institutions and finance corporations that presently own foreclosed homes hire professional Realtors to list and sell the homes. Foreclosed homes can be found on the MLS. At this time the selection of foreclosed homes is awesome. It should not be difficult to find exactly foreclose home you’re looking for.

Is it a deal? The lender will attempt to recoup as much of the amount owed as possible. Usually, a foreclosed home new on the market may be normal asking price for that home. But wait, after 60 – 90 days the lender begins to loose hope and the price will be reduced.

Be a Smart Buyer

It is important to do your homework. Know the market price and the cost of repairs! Just because the price is low, you may have to put a lot of money into a foreclosed home. The deal may not make sense.

Assess the value. Recent a Cape Coral Gulf Access home sold for $150,000. It was a 2 bedroom, 1 car garage, no lanai, no pool. The added value for a 3 bedroom, 2 car garage, lanai, pool is $67,000 so if you find a Cape Coral Gulf Access home for $217,000 or less with these features, you should buy it.

What the Lender will Require

-“AS IS” sales contract (Acceptance of 5 business days. closing date 30days later)
-Escrow money (minimum 1% of purchase price)
-A recent pre-approval by a reputable lender or proof of funds

The lender will have several addendums and maybe their own contract to sign