We frequently have clients asking about this type of properties and there seems to be a lot of misconceptions.
First, you need to understand that there are two basic types of foreclosures
- Those sold at tax auction on the courthouse steps.
- Those already foreclosed on by the bank and being offered on the banks
If you plan to buy at auction you need to understand the following.
- You will need cash
- You will not be able to do inspections or verify condition
- You may have to deal with clouds on title
- Those ending up in foreclosure are often angry and trash the place on the way out.
- You will be bidding against veterans who do this all the time.
A much safer route is buying an Estate listed on the MLS. Although you will not get the same level of disclosures because the bank never resided at the property, you will have the opportunity to see the property before buying it, do inspections to get an accurate picture of condition, and have title insurance. These properties usually sell for less than a comparable owner occupied home, and if you use the bank’s title company you can save thousands on escrow fees and title insurance.
Although these transactions are similar to a "normal" purchase, there are some differences, so before you buy one of these properties find a knowledgeable local Real Estate Broker who has experience with foreclosures to guide you through the process.
For more information contact:
Lance R King/Founder Managing Broker
King Realty Group
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