Tips for Buying Foreclosures
These days it seems that most buyers want to:
a) Buy FORECLOSURES (it may be more accurate to say "DISTRESSED" rather than "FORECLOSED" properties); and
b) Make sure they take advantage of the extended TAX CREDIT for first-time and existing homebuyers which expires April 30th.
Invariably, every time I talk to a potential buyer, these two topics come out. And why not? Everyone is out there looking for "the best deal" - a home with no problems for a bargain basement price (buyers may be able to pick up a home for a fraction of its price from three years ago). And it seems that maybe 1 out of 4 new listings coming on to our MLS is either a "Possible Short Sale" or "Lender-Owned Property".
So, like it or not, that's where we are.
In order to "take advantage" of this market opportunity, I recommend two basic things:
First, buyers must be emotionally unattached to the property, because after doing their due diligence they may find that although the price was very attractive, the home had too many problems.
Second (especially in the case of short sales), buyers must have a saint's patience. Initially buyers must make sure that the sellers submit the COMPLETE paperwork to all the lienholders in a timely fashion. Sometimes this is easier said than done, believe it or not some sellers are so depressed that they just don't move quickly (in a short sale the only incentive for the sellers is to reduce the impact that a foreclosure would have on their credit score, given that one of the pre-conditions that lenders are going to impose on a short sale approval is that the sellers receive NO MONEY from the transaction).
Interested in buying foreclosures? Send me an email to receive a list of lender-owned properties or short sales in your area of interest. Or call me at (843) 864-3777.