Thousands of houses are foreclosed in the United States each year, which means that there is currently a fairly healthy market for those who want to buy such properties, either with a view to living in them, and selling them for a profit at a later date.
However, before you can get started with that, you’ll need to know where to look and what to look for before committing any of your cash to a sale. Here are some tips on how to buy foreclosed homes online.
Look at the banks
Your first port of call should be the websites of the largest banks. Since many of them act as loan providers for the people who previously owned the home, they will also have an interest in selling the home again once it has been foreclosed on.
As such, many institutions, such as Bank of America, maintain their own property listings that highlight homes that are currently available to purchase. This also acts as one of the most reliable places to look, since you’ll get the property directly from the people who foreclosed on it, rather than having to go to a third party to find out. More properties can also be found on the Fannie Mae and Freddie Mac websites.
The Foreclosure Stage
If you are looking for some insurance on your purchase, then it may be wise to avoid any property that is in the early stages of foreclosure. After all, the current owners may very well be able to get out of the fire and raise enough funds to maintain the property.
Therefore, you should always check the status of any property that catches your eye, to be sure that it is fully available. Few things are worse for a property buyer than putting their heart into something, only to have the purchase fall through at the last minute.
The price
This should be an obvious point, but it still bears repeating. After all, any property that is in foreclosure is there because someone couldn’t afford the costs associated with that house.
Make sure the property’s listed price is within your budget before you even think about making an offer. It may be worth avoiding the property altogether if the price reaches the upper limits of what you can afford, as such properties will require additional work after purchase. Speaking of which…
find out what’s wrong
Very few properties are perfect and you have every right to have an inspection conducted on any foreclosed property that comes to your attention. Don’t just trust the online listings you read, and be on the lookout for any suspicious language being used. If it seems like too many potential negatives are turning into positives, this is probably the case. At the very least, such a situation will work in your favor when the time comes for negotiations.