Our Beautiful House
  • Home
  • Decorate
    Decorate
    Show More
    Top News
    Just What Exactly Is Contemporary Design?
    December 8, 2022
    25 Chic Modern Outdoor Furniture Ideas
    November 7, 2022
    How to Budget for Home Maintenance and Repairs
    October 18, 2022
    Latest News
    Just What Exactly Is Contemporary Design?
    December 8, 2022
    Contemporary Design Style And The Essentials To Master It
    November 22, 2022
    9 Popular Bedroom Flooring Settings to Consider
    November 21, 2022
    How to Build a DIY Breakfast Nook
    November 16, 2022
  • Rooms
    Rooms
    Show More
    Top News
    Make a Room “Look Right”
    October 13, 2020
    8 Dining Room Updates for the Perfect Dinner Party
    May 14, 2020
    How to Set Up a Home Gym Anywhere in Your House
    December 3, 2020
    Latest News
    9 Popular Bedroom Flooring Settings to Consider
    November 21, 2022
    How to Choose the Best Garage Floor Tiles
    November 21, 2022
    Simple Steps of Kitchen Remodeling
    November 21, 2022
    Bedroom Ideas for Sophisticated Design Lovers
    November 11, 2022
  • Outdoor
    Outdoor
    Show More
    Top News
    Moving to Miami: Top US City for Tech Startups to Get Hundreds of New Homes
    February 19, 2020
    5 New Pool Design Trends
    September 29, 2020
    Selling a Home in a Buyers Market
    June 2, 2020
    Latest News
    5 Best DIY Landscaping Ideas
    November 22, 2022
    15 Fun Backyard Ideas That Kids Will Surely Enjoy
    November 14, 2022
    25 Chic Modern Outdoor Furniture Ideas
    November 7, 2022
    Small deck ideas: 31 budget decking designs for tiny gardens
    October 18, 2022
  • Lifestyle
    Lifestyle
    Show More
    Top News
    Unforgettable Stay At The DOLDER GRAND, ZURICH
    July 24, 2020
    10 Signs You Have Too Many Houseplants
    August 4, 2021
    6 Great Theater Cities
    October 7, 2019
    Latest News
    The 6 Worst Types of Clutter for Homeowners
    December 5, 2022
    12 Hidden Storage Ideas for Combating Clutter
    November 21, 2022
    15 Fun Backyard Ideas That Kids Will Surely Enjoy
    November 14, 2022
    10 Ways to Let Go of Sentimental Clutter
    October 18, 2022
  • Real Estate
    Real Estate
    Show More
    Top News
    Understanding the Differences: Real Estate Broker vs. Agent
    June 5, 2020
    How to Sell Your House For Sale By Owner
    June 3, 2020
    Seller Pricing for a Slowing Market
    May 16, 2022
    Latest News
    Homebuyers Avoid Bidding Wars. Should You?
    September 13, 2022
    10 Questions Every Homeowner Should be Asking
    September 11, 2022
    6 Ways on How To Invest in Real Estate
    September 6, 2022
    Are You Being Represented by a “Yes-Agent”?
    August 9, 2022
  • Contact
Reading: Buying a Foreclosed Home: What You Need to Know
Share
Notification Show More
Latest News
Just What Exactly Is Contemporary Design?
Decorate
The 6 Worst Types of Clutter for Homeowners
Organization
Contemporary Design Style And The Essentials To Master It
Decorate
5 Best DIY Landscaping Ideas
Gardening
12 Hidden Storage Ideas for Combating Clutter
Organization
Aa
Our Beautiful House
Aa
Search
  • Home
  • Decorate
  • Rooms
  • Outdoor
  • Lifestyle
  • Real Estate
  • Contact
Follow US
  • Blog
  • Complaint
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Our Beautiful House > Blog > Real Estate > Buyer Guide > Finding a Home > Buying a Foreclosed Home: What You Need to Know
Buyer GuideFinding a HomeGuides

Buying a Foreclosed Home: What You Need to Know

Last updated: 2020/06/08 at 4:55 PM
By Stefan #TheListingBroker - Real Estate
Share
5 Min Read
A foreclosure sign outside of a condemned home
SHARE

Buying a foreclosed home at auction or from a lender can be a way to purchase a property at a discount, and who doesn’t like a discount? But purchasing a foreclosure property can be a complicated transaction. Here’s what you need to know about the process of buying a distressed home.

What, exactly, is a foreclosure property?

A foreclosed home is when a lender or lien holder seeks to take a property from a homeowner to satisfy a debt. The lender can either take ownership of the property or, most likely, sell the property to pay off the debt. The lender typically isn’t always looking for top dollar on this loan-gone-bad, just a fair price that will at least cover the unpaid mortgage.

What is pre-foreclosure?

A pre-foreclosure property is not necessarily for sale. The pre-foreclosure stage is the period after a default notice has been sent to the homeowner and before the property is sold at a foreclosure auction. The owner may be working to fix the loan default or be hoping a cash buyer will purchase the property before foreclosure, which would damage his or her credit. Most experts consider this the most difficult stage during which to purchase a distressed home; you’ll be dealing directly with the owner, not a bank or mortgage company.

Although the pre-foreclosure stage can yield some great deals, transactions are often tricky because most of these houses are not yet on the market and, if the owner pays off the debt, may never be for sale. If you’re still interested, read 10 tips to guide you through the search and purchase of a pre-foreclosure home.

How does a foreclosure auction work?

If you’re an auction newbie, attend a few with the intention of learning not buying. Some are small trustee auctions that don’t take long; others are held by large auction firms and include multiple properties. Seeing how the auction works will prepare you to jump in once you’ve found a property you like. Once that happens, use Zillow’s Foreclosure Estimate to determine what the home will likely sell for.

When you’ve found a property you want to bid on, contact the auctioneer or trustee to determine how much money you need to bring to the auction; the amount varies from state to state. Many auctions require bidders to bring a certified check for $5,000 made out to the auction company to show legitimate intent. In some cases, a percentage of the winning bid is required on the day of the sale. Make sure you research auction requirements in your state before bidding on a foreclosure.

And remember that your auction bid is absolute. Read more about foreclosure auctions, including tips from veteran auction-goers.



How to find foreclosure properties

To see pre-foreclosure and foreclosed properties on Zillow, enter your search area, click “Filter,” and then click the “Pre-Market” category. Or you can check Zillow’s Agent Finder to find agents who have experience with foreclosures; open the “Advanced” menu under Service Needed and click Foreclosures in the list of Specialties. Your agent will guide you to foreclosure property listings on the Multiple Listing Service (MLS), a real estate professionals-only database.

Other sources of distressed property information include newspaper legal notices, bank websites, and government websites such as the Federal Housing Administration. Beware of ad-based, subscription websites because which may include inaccurate or outdated listings.

A few words of caution

Distressed properties are generally sold “as-is,” as in what you see is what you get. There are no warranties so make sure a certified inspector looks over the property before you make an offer. You need to know how much it will cost to make the place habitable or flippable.

Lenders typically clear the title before listing a foreclosure, but it’s wise to hire a title company to research and cure title problems before closing on the property.

It’s also a good idea to have your financing lined up before making a bid. But even if you offer cash, don’t expect a deal on a bank-owned property to proceed quickly. Multiple pairs of eyes must review the deal and respond to your offer. It could take weeks, so be patient.


SIGNUP FOR NEWSLETTER

Stefan #TheListingBroker - Real Estate June 8, 2020
Share this Article
Facebook Twitter Email Print
How you feel with this article?
Love0
Happy0
Surprise0
Wink0
Sleepy0
Sad0
Angry0
Leave a review Leave a review

Leave a review Cancel reply

Your email address will not be published. Required fields are marked *

Please select a rating!

Our Beautiful House 

  • Home
  • Decorate
  • Rooms
  • Outdoor
  • Lifestyle
  • Real Estate
  • Contact
Subscribe to Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

I have read and agree to the terms & conditions

Find Us on Socials

© 2022 by #TheListingBroker. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?