The title may be a bad joke, but there is no joke about the amount of Foreclosed Homes on the market and a Tsunami of more to come looming on the horizon. There are many factors to consider when buying a foreclosed home compared to a traditional home purchase. If the house requires extensive renovation it can cost considerably more than investing in a foreclosure home that has a higher price tag, but requires few repairs.
Get a comparative market analysis (CMA) from your Realtor or Broker before making the offer. Even if the sellers agree to your offer, their bank or lender might reject it if it’s too low. You could buy a home in pre-foreclosure, at a foreclosure auction, or from the mortgage lender.
In this case, they may try to obtain payment of the debt by a sheriff sale of the house, thus pushing it into foreclosure. WHEDA-owned real estate listings are updated monthly so check back to this webpage often as properties are added and sold frequently. Even though you’re working with a qualified agent and lender, you need to do some work upfront to become familiar with the basics of the foreclosure process.
Unless purchase price will pay mortgage(s) and closing costs in full, lender’s approval of price and terms of sale will be required (i.e. short sale). After conducting research, it’s time to compile a list of potential foreclosure homes. Following an eviction, trespassers sometimes enter the property and remove copper plumbing pipes and anything else with a resale value.
We would be buying the home directly from the current homeownersâ€”not the bankâ€”before it officially went into foreclosure. Hire an unaffiliated, independent appraiser to inspect the house and give you an idea of its real market value, just to be sure. This section will publish pre foreclosure listings that will be going up for sale at a foreclosure auction.