People who have been hit hard for what ever reason, and for many reasons, are experiencing that real estate is not the liquid assets they thought it was. Foreclosures and Auctions are nothing new, the difference we are experiencing now, is that there is a high percentage of them and the market value of these homes are far less than what is owed to the bank. It is for this reason that it is extremely time consuming to successfully purchase a property that is in Foreclosure or at Auction.
Hint 1– Most people are opting to attempt to sell their home Pre-Foreclosure a.k.a. Short Sale. The Seller needs to prove hardship to the bank for a bank to even consider a Short Sale. A Short Sale simply means that the lien holder(s) have to approve the sale because the market value of the house is less than the balance of the mortgage(s). A bank will NOT sell an asset much less than market value. If you are considering purchasing a home that requires the lien holder(s) approval, we suggest you complete your due diligence and know what the house is worth and what the process is and what the probability is of even purchasing a home in Pre-Foreclosure. The bank may or may not agree to a Short Sale.
Hint 2– Find your source for where Trustees notify the public of houses that are in Foreclosure. We suggest your large and small local newspapers. We also suggest to call the banks directly and speak with their REO departments. There are many companies who will provide lists of foreclosures.
Hint 3- If you do not have savings to put towards the purchase of a home, you will have a very difficult time buying a home in Foreclosure or Auction.
When the bank auctions a house at the courthouse steps, you will need a cashiers check for a certain dollar amount, often about 10%. You have to show this check to the bank rep at the courthouse before they will allow you to bid.
When an auction company is auctioning a home, they required funds at the time of bidding, as well. You need to be very familiar with the terms of the auction which is typically disclosed in detail on each company’s web site.
A Realtor would be the best recourse for you because they have many solutions for buyers who would like to buy with no money down.
Hint 4- Before bidding on any property, pull a title search.
Hint 5- Before bidding on any property, you need to look at it. Make sure you know the condition of the property.
Hint 6- Do not get caught up in the bidding process and pay too much for a property. In most cases, the bank is the first bidder.
Hint 7- Get totally pre-approved and have a clear understanding of what a monthly payment will be and how much money you will need to purchase any of these homes. You will forfeit your deposit if you do not move forward with the purchase.
Hint 8- Many foreclosures are listed by Realtors.
Hint 9- Nice, clean, updated, properties are highly sought after. If they are priced well, you can be assured that there will be more than one offer on that property.
Hint 10- Knowledge, patience, and hard work is key to successfully buying property that is in Foreclosure or being Auctioned.
True, it is a buyers market and there are foreclosures and auctions galore, but we have found that many people are realizing that it is not easy. Williams Realty is here to work with you and make sure you buy a home while the buying is right. Don’t wait until prices start to rise. Contact us now to get into your new home!