Buy Foreclosure

Written by Linda Alexander
Bookmark and Share

To buy foreclosure property, the best deals out there are to find properties that can be repaired cheaply, with things that will make a huge improvement in curb appeal. For instance, broken windows or peeling paint will add a lot of visual value to a home. Corroded pipes, however, will cost so much to fix that you might not see a profit!

Experts disagree on when is the best time to buy foreclosure properties. Some say that pre foreclosure is your best opportunity. If the property is worth at least the balance on the mortgage, you can make a deal with a homeowner. Sometimes the homeowners even pay investors to buy the property in order to save their credit.

How to Buy Foreclosure Properties from Homeowners

Where do you find such motivated sellers from which to buy foreclosure homes? Check the legal notices for mortgage foreclosures in your local newspaper. Homeowners are usually being harassed by bill collectors and may not answer their phone. The best way to contact them is by mail. It's a less-invasive approach, and if they are interested in your offer, they will contact you.

Show empathy for the homeowner's situation, whatever it may be. Let them know that you might be able to help them with their financial problems, and tell them that you are a private investor in their area. You'll need to see the property to determine whether it is in need of repair; do this with the homeowner and use a good inspection checklist. Make no offers at this point, until you do the math and fully understand the property's condition.

Bookmark and Share