Buying Foreclosed Homes




Advice and tips for single women on buying foreclosed homes.

If you are considering of buying a home, the present economic situation is a good time. Home prices have fallen 15 to 20 percent in many areas. One of the ways to save money and lower your home purchase is to buy a cheap foreclosed home instead of a new one. And it's also a good investment. In a few years time when the economy improves, the price of property will increase again.


The main reason that these foreclosed homes are cheap is because the units were repossessed by the bank or lender. Normally, what is left for you to pay is the remainder of the loan plus any outstanding taxes. A home that was valued at $300,000 would probably cost you half of that now. What you need is to come up with the down payment of 10 - 20 percent. And the good thing is, if it is your first home purchase, you will still be qualified for the first time home buyer tax credit.


But be warned that banks are tightening their lending criteria. You have to provide evidence that you have a steady income and good credit. The bank or lender will look at your records such as, do you owe any other mortgages or back taxes.


The other thing you should be aware of if you are thinking of buying foreclosed homes is, they are "as is basis." So if the condition of the foreclosed home is bad and need a lot of repairs, you will have to come up with the extra cost before or when you move in.


But don't let that deter you from buying a foreclosed home. What you need to do is go for a little shopping and do your homework. Determine which area or location that you are interested to live or relocate and start searching. You can search the internet and look for the list of foreclosed houses published on real estates' websites and then check the record at the courthouse. The next thing to do is find an experienced realtor.


If you plan to live alone, check the neighborhood. Your safety as a single woman living alone should be made a priority. Once you like a home, view it and inspect the condition especially if it has been abandoned for a long time. Bring a home inspector along to assist you in making an estimate of how much work need to be done. It's not worth to buy a place if it's going to cost you a bomb to maintain it, unless it is going dirt cheap. Even if it is, ask questions and probe to find out why. There is always an underlying reason if something is too good to be true.


The process of buying foreclosed homes take a longer time compared to buying new ones, sometimes up to three months. And there is also more paperwork involved. You need pre-approval. You have to make a bid and you might not be the only one having the intention to buy a particular foreclosed house. The best thing to do is assign an attorney to advice you and handle your paperwork. It will save you a lot of headache.


And remember to check for any unpaid bills to the local government agencies. As a new owner, you are responsible for whatever the previous owner owe the government.




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