Buying Foreclosure Homes

Written by Stephanie Dula
Bookmark and Share

Buying foreclosure homes with high resale value requires much homework, and will greatly benefit from the services of a qualified foreclosure broker. There is no way to tell if a foreclosure property is a good deal unless a wise buyer invests some time and energy into finding out its value. Since foreclosure properties can sell quickly, sometimes at public auction, it's essential to move fast.

Common Foreclosure Conditions

Generally, foreclosure homes will need some degree of repairs and fixing up, and they are usually sold "as is." Potential buyers will ideally be able to inspect the home, though time may not allow it. Once a desirable foreclosure home is located, neighbors may be able to provide some information as to the state of the property.

Those interested in buying foreclosure homes may also want to know the value of similar homes in the neighborhood. This can help buyers decide their bid amount, and ascertain if the property will be a worthwhile investment. They may also be able to go the lender and find out a general expectation of how much the home will go for at auction.

There are a handful of government loan programs administered for home improvement or "rehab," as well as several for designated historical properties. Government websites like HUD, VA, and FHA can provide detailed information and eligibility requirements of these and other programs. Smart buyers will be prepared when it comes time to bid on a foreclosure home at the risky game that is a public auction.

Bookmark and Share