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Common Mistakes Buying Foreclosed Home

By Edited Nov 13, 2013 0 0

CLOSE ON FORECLOSURE

Nothing features the damage of this country's housing bust more strongly than the abandoned homes now occupying the streets of the nation's communities. For real estate traders, one person's disaster can be another's success. Buying property or foreclosed property is now a very complicated and drawn out process that can often lead to very suttle mistakes. Here are 3 common mistakes people often make when people attempt to buy a foreclosed home.


1. Doing it Alone - It is not suggested that you go in on buying a foreclosed home on your own. You might be able to get away with handling buying a traditional property, but buying  foreclosed real-estate is another matter. A suggestion is to find a broker with experience in house foreclosure in your area you are buying.  There are many legal issues that need to be addressed during the buying process.


2. Looking only at the sticker price - We often negotiate the cost of homes and looking at foreclosed homes is no different. Be aware that you might need to set aside some extra money to fix up the house also. Just because foreclosed homes seem like a good deal; they are generally lower than the amount of its' value, you must be aware of the money it is going to cost to fix some problems in the home.

3. Widespread Search - they are so many homes in the housing market that arrive to the industry each and everyday it is easy for home buyers to get over excited. Start to narrow your search down by looking at specific neighborhoods or communities that you would like to live in. Also, it is a good idea to find a broker who is familiar with the area. You will be able to give him/her details about what kind of home you want whether it be a ranch style, colonial, victorian, etc. so the broker can narrow down your options. You can also give the broker a price range you are looking at to purchase your new home.

 

Buying a home is a new and exciting time in your life.  Be sure to have a down-payment handy as often it decreases your interest rate on your monthly mortgage.  Take these tips into consideration as it can save you time, stress, and money in the long haul.  Trust the experts and most of all be patient!


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