Steps to buying a foreclosure

Through most of 2011 buyers have been looking at the foreclosure market in search for a new home. First time homebuyers and repeat homebuyers have in some cases been able to find their best home at their best price by purchasing a bank owned foreclosure.

2012 should offer more of the same opportunities to Florida homebuyers. In order to take advantage of these opportunities there are steps that I would suggest you take in order to successfully buy a foreclosure home.

Steps to buying a foreclosure

• Finding foreclosures. This is probably the easiest step in the process of buying a foreclosure. The information is freely available. All you have to do is email or call me and let me know the size, location, features and price range that you are interested in and I will send you a complete list of available foreclosures.
• Be ready. There is a high demand for foreclosure property. Often when a home that has been foreclosed on reaches the listing market there are multiple offers on the home within days. As a buyer you need to take the steps that will strengthen your offer in the eyes of the lender. You can do this by meeting with a lender and getting yourself pre-approved for the loan. Getting pre-approved and submitting a pre-approval letter with your offer will show the lender you are ready to close subject to inspections and appraisal.
• Be prepared. In many cases banks owned foreclosures end up selling for more that the home was originally listed for. Low ball offers have little chance of being accepted in a competitive buyer’s market. In order to make the highest and best offer, research the neighborhood or community to determine what homes have sold for within the past few months. This will help you with deciding what you should offer.
• Be ready to read. Banks use addendums, lots of addendums when selling real estate. You need to take the time to read each page so that you are fully aware of what you are agreeing to. Banks will often sell their real estate “as is”, they will not pay for an owner’s title policy or document stamps on the deed and they have strict guidelines on meeting closing dates and contract timelines.

An important step is in making sure you have the assistance of a real estate professional who understands the foreclosure market in your area.  Give me a call, 407-304-0255 to discuss your personal situation.