Buying a home is an exciting step towards your future! While there are many important considerations to make before purchasing a home, there are a few important things to keep in mind if you plan to purchase a foreclosure specifically. If you plan on purchasing a foreclosure in the near future, be mindful of the following red flags.
Many people warn against purchasing a foreclosure property in an auction setting altogether because of the number of risks involved. When you buy a foreclosure at auction, you do not have adequate time to inspect it thoroughly it for damages. With this, it can difficult to ascertain whether or not a foreclosure property is priced correctly without having a ballpark figure of how much repair costs will be in the future. Also, it is crucial to ensure there are no outstanding taxes owed on the property, as well as any other senior liens.
Have you ever heard of the term, ‘right of redemption’? If you are looking to buy a foreclosure in a state that has right of redemption, you will need to be mindful of this concept in the process. This concept means that a homeowner who has foreclosed on their property has the right to purchase back their home at the same price the buyer paid for it, plus additional interest. As a buyer, it is essential to be sure that you clearly understand the conditions. Keeping these conditions in mind will help to prevent you from wasting money as you attempt to make repairs to the property, only for the property to be taken away from a few months after you have purchased it. While the ‘right of redemption’ period varies, the maximum time frame is up to one year.
The foreclosure market is competitive, and with this, properties tend to sell quicker than most people realize. To put yourself in the best possible position to close a deal, you should be pre-qualified. Sellers prefer to work with individuals who do not need to seek out loan approvals.
We live in a digital age where convenience and accessibility are the standards of new devices, new software, and technological advancements. For that reason, many homebuyers today are interested in homes that feature smart technology, from smart thermostats to LED lights. Keep reading and discover a few of the most popular home technologies preferred by homeowners in 2019.
Fluorescent and incandescent lightbulbs, as well as dated fixtures, are becoming a thing of the past. Now, many homebuyers appreciate homes that feature LED lighting throughout the house. Not only do LED lights last longer than traditional lighting options, but they are also energy efficient and cost significantly less to operate. In addition to LED lights, many homebuyers are looking for smart lighting systems that can easily be controlled from a mobile device.
Similar to the new lighting systems, people are now looking to control the interior temperature of their home with an app on their mobile phone or tablet. With a ‘smart’ HVAC system, homeowners can save money on their heating and cooling bills with full control their home temperature from remote locations throughout the day. For example, rather than remembering to lower the temperature of the heat as you are leaving the house for work, a smart HVAC system would enable you to turn off your heat from your desk at work, as well as turn the heat back on before you return for the evening. This ability to control the temperature can have a significant impact on helping to save you money on energy costs throughout the year.
Home security surveillance is an effective way to combat criminal activity by protecting physical property. As a result, smart entry systems have significantly grown in popularity throughout the early months of 2019. With this, we can even expect more security devices to be unveiled later this year. These systems typically include doorbells with cameras that allow the homeowner to see who is on their property from their smartphone, even when they are not at home. Also, these smart security devices and applications can warn homeowners of potential hazards or intrusions, such as a door or window left open.
Are you in the market for a new home? Whether you are looking to purchase a home for yourself or searching for an investment opportunity, you have a multitude of options available for you! A quick internet search will allow you to filter properties that meet your desired price range, location, home size, etc. When most people are searching for their dream home online, it usually doesn't even cross their mind to consider the foreclosures listings in the area. Since there are several benefits of doing so, we have prepared a list of a few reasons why you should always check the “foreclosure” box before you click the search button. Keep reading and discover a few benefits of purchasing a foreclosure in 2019!
One of the most appealing advantages of purchasing a foreclosed home is that you can get the most bang for your buck. If you are concerned about breaking the bank, a foreclosure may be an excellent route for you. In almost all cases, foreclosed homes are priced below market value. This is because the banks are trying to get these properties off their books as soon as possible. As a result, they are generally set at a low price to generate more offers. If you study the market in the home’s area, you should be able to determine whether or not a foreclosure listing is a good deal.
Foreclosed homes are often seen as investment opportunities. This is because they are generally sold for low and then flipped for a profit later on. Real estate investors love being able to buy low and sell high!
Many people today are scared about having a high mortgage payment due every month. However, did you know that by purchasing a home that is below your budget will provide you with lower mortgage payments? For many home buyers, this is the only reason they need to invest in a foreclosure!
If you're looking to save money on purchasing a house, foreclosures are a great way to go. However, even if you find the property for free (which you can do on USHUD.com) there are still very costly mistakes that most people make when buying a foreclosure.
Read more: 5 Costly Mistakes When Buying Government Foreclosures
REO stands for "Real Estate Owned" and is the term that the mortgage holder uses to identify homes that they have foreclosed on and they are holding in their inventory.
Before a house is foreclosed on, vacated and becomes a REO listing it is considered a pre-foreclosure. Pre-Foreclosures are historically bad investments for a number of different reasons:
