Step By Step: Buying a Foreclosed Home

Click Here to Search Foreclosed Homes

Buying a foreclosed home can be a very intimidating process, but do not let that defer you from following through with doing it. Just be sure that you are going about it the right way, considering all avenues and knowing who to go to. 

Now, there are two ways to approach buying a foreclosed home---auction and realtor. 

If you choose the realtor route then obviously the first step in finding a foreclosed home is finding a realtor. It is highly recommended that you find a realtor who specializes in foreclosed homes. You want to make sure that whoever you are working with knows the banks, knows the market and knows all about foreclosed homes. This is not the typical home buying process, so it would behoove you to hire someone who specializes. 

It is a good idea to find multiple realtors and reach out to all of them, asking for a list of foreclosed homes in your area, and see who brings you what. You want to be very specific, informing them that you have a desired price range and neighborhood(s). 

When you do find a home, it is recommended that you go to the county clerk's office to get the title of the home. This way you will have all of the legal information on the home that you are looking at. 

Now, if you choose to take the auction route--be cautious. Do your research, and attend an auction or two just to watch and see how it all works before you actually continue on to try and buy. Before you bid, you need to know what kind of budget you are working with and stick to it. Keep in mind any repairs that might need to be made on any given home as well and be sure to factor that into the budget. Furthermore, auctions are almost always cash only. 

We would never recommend to buy a house sight unseen. You need to go look at the house, inspect it and be sure that any damages done will not be over your budget. Beyond that you should pay to get the home professionally and thoroughly inspected so that anything you might miss will be accounted for. 

Consider the neighborhood that the home is in, the commute and all contributing factors like you would in any other home buying process. Once you decide on a home, be sure to look into any redemption laws that are applicable by state. The last thing you want to do is starting buying everything for your home just to have it taken away from the owner coming up with the payments. Be cautious if this applies to your state. 

Be prepared to wait after you submit an offer. Since you are not really dealing with a homeowner, you are dealing with a a bank, it can take much longer that the typical home buying process. 

Click Here to Search Foreclosed Homes

Latest Posts

The Art of Changing Realtors When You Need to via @homebidz

The Art of Changing Realtors When You Need to

First Time Home Buyers Click Here Finding a realtor can be kind of like dating. There are a ton of them, each with their own set of pros and cons, different areas of expertise, etc. So, when you start forming a...
Loans, Fees, and the Real Cost of Owning Your Home via @homebidz

Loans, Fees, and the Real Cost of Owning Your Home

Need a Home Loan? We know this may come as a shock, but that home that’s for sale for $350,000 will actually end up costing about $575,000 over time. How? Between the interest rates, insurance, property tax, and...
Rent to Own vs. Traditional Mortgages via @homebidz

Rent to Own vs. Traditional Mortgages

Need an FHA Loan? It’s no secret that most people seek out rent-to-own home options over traditional mortgages because of credit issues: either their credit is fair or poor or simply just unestablished. Depending...
Why Does My Credit Matter? via @homebidz

Why Does My Credit Matter?

Click Here to Look at Bad Credit Home Loans Honestly, if you have less than perfect credit, you can still potentially buy under a rent to own option, but you still have to get financing at some point, so you'll need to...
Taking the First Step on Your Rent to Own Journey via @homebidz

Taking the First Step on Your Rent to Own Journey

Looking for Rent to Own? When considering a rent to own journey, there certainly are a couple different choices. Each requires the rental property itself, two authorized documents, and then -- sometimes -- an...
Simple Ways to Save for Your Down Payment via @homebidz

Simple Ways to Save for Your Down Payment

Need Family Support? There are a lot of different ways to purchase a home. You can get creative and try owner-financing, or even buying a home at an auction. For the majority of us though, we’re still using banks and...