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Buying a Foreclosed Home Tips

Buying a Foreclosed Home Tips

Buying a Foreclosed Home? Know the Facts

Home prices are falling down all across the nation, but foreclosures are on the growth. According to stats for foreclosure properties marketplace, more than 1.2 million foreclosures were filed in 2007. And industry experts expect that number to continue to rise in 2008.

Losing a home to foreclosure can be annihilating for any family. Even so, foreclosure property can provide a window of opportunity for those in the market for a house. The Better Business Bureau cautions home buyers who want to take this route to homeownership to do some research and know the facts about purchasing foreclosed homes before venturing into this type of deal.

Here are some usefull tips:

Know your options. Home buyers can buy foreclosed properties through pre-foreclosure which permits you to buy a house directly from the homeowner before it goes into bank foreclosure; at auctions where you will bid against other interested buyers; or properties that are Real Estate Owned, also known as REO.

Conduct a “title search.” This process can help you find out whether the property has a second mortgage or lien against it. If it does, you may be responsible for paying off the initial mortgage, any second mortgage loans and any liens on the property before you can take ownership.

Be well aware that whenever you purchase the house in an auction, you may not be able to look inside the home or conduct a home inspection in advance of the sale. Properties sold at auctions are usually sold “as is.” This can create problems when trying to obtain a mortgage loan.

Obtain help if you need it. Find a real estate agent that is experienced in foreclosures and check them out with the BBB (www.bbb.org). The BBB offers free reliability reports on more than three million businesses.

Have your agent check nearby or comparable homes to see if the asking price for a foreclosed home is, in fact, a bargain.

Foreclosure laws vary from state to state so check the laws in your area by contacting your county clerk’s office.

Article Source: Real EstateTips from top notch experts

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