Foreclosures are up in 26 of the 50 largest metro areas in North America. An increase in foreclosed homes might sound like a negative thing, but it’s actually a good sign for markets. It’s also good news for bargain hunters and intrepid homebuyers who want a cheap house. If you are planning on buying a foreclosure there are some things you need to know before taking the plunge.
Forget Auctions – If you’re new to the foreclosure market don’t even think about buying your new Owen Sound Home at an auction. Prospective buyers can’t inspect the home to ensure there’s no damage, which is likely if the house has been vacant for a while, or if there are any senior liens on the property. This means the purchase could turn into a Pandora’s box of expensive repairs.
Beware the Current Owner – If the defaulted homeowner is still living in the house during the auction, the buyer has a couple things to worry about. Evicting the former owner and the potential for vandalism. It’s not unheard of for resentful owners to trash the house before being evicted. Buyers must pay in cash, which isn’t an option for many people.
Buy From a Bank – A safer bet is to look at homes owned by the bank. Banks are required to pay off any senior liens, you won’t have to kick out any occupants, and you’ll be able to inspect the home for damage as well as estimate how much you’ll need to set aside for any repairs.
Beat the Crowds – If there’s a particular Owen Sound Property that catches your eye, you should contact your Realtor immediately. If the institution holding the title is a local or community bank that doesn’t have a big infrastructure for processing foreclosure sales, they might be happy to get it off their hands.
Get Pre-Qualified – The foreclosure market is fast paced and competitive, since many people are looking for bargain basement pricing. This means it’s better if you get a letter of prequalification. A seller will prefer working with a buyer who’s already secured their financing.
Expect a Low Appraisal – Foreclosures tend to appraise lower because neglect or vandalism may have contributed to damage. Even with financing secured, getting the home isn’t a guarantee. As with any home purchase, the amount for appraisal is determined by the size of loan you qualify for.
Buying An Owen Sound Foreclosure
Remember that when ever you take on a property that requires repairs you must be prepared to budget for that cost. Most Owen Sound Foreclosures are sold “As Is” and will most likely need some time and money to make them shine