Buying a Foreclosure Tips and Information

We are sure you have heard that homes facing foreclosure are once again on the rise. So you have decided this may be a good time to buy one of these foreclosed homes. There is some information you need to have to make it a smooth transaction. First of all keep in mind that if the home is a foreclosure the bank has already spent and lost money on the loan. Although these can be a great buy, I have found that if you keep your offer to the bank in the 85% + range of asking price, your chances of purchasing the home are much better. The other thing to keep in mind is that the home will probably need work and is being sold "as is, where is" although some banks will still allow negotiations for repairs. When getting a loan for a foreclosed home, sometimes it is more difficult as the appraiser may put some stipulations on the appraisal for repairs. You may be able to qualify for a FHA 203 B loan which will cover repair cost but will also lengthen the time it will take to get to closing. However it will give you the opportunity to have things completed to your specifications. Be sure your Real Estate agent is versed in the process of purchasing a foreclosure as there is additional paperwork and addendum's that will need to be completer. Overall buying a foreclosure is a great way to get a great home at a great price but be sure to do your due diligence. One more thing that I have heard many times is that the appraiser will do the inspection, keep in mind they are limited and are checking value only for the bank. Hire a professional inspector, the $200 to $300 dollars it will cost you is well worth the cost to avoid problems later. Any questions? Feel free to ask. Thanks again.