Considering buying a FORECLOSURE?

Buying a foreclosure (aka REO or Real Estate Owned) can save you a lot of money – BUT – be prepared for some additional hassles, longer timelines than when buying a non-foreclosure, potentially missing appliances, damage to the house and other oddities. I felt it a very timely topic, since some mortgage companies business is over ¼ foreclosures right now, and growing.

You may have also seen “short sale” during your recent home search. Be aware, this type of purchase requires “3rd party approval”, such as the bank that holds the mortgage. Although there is a published sale price, and you have put in your offer, that offer is subject to the bank approving the deal, not the owner of the house. Short sales are more challenging than foreclosures, at least with foreclosures the bank already owns the property, thus eliminating that “3rd party approval” step and process.

Are you sure you want a foreclosed home? Yes, you can get a good deal, but be ready to potentially buy all new appliances, do some handyman work to include painting, fixing holes, rehanging doors, installing sinks, etc. When the owner finally lost their house, and the bank took over, the previous owners in some cases will remove everything they can from the house and sell it to help cover their losses. Some owners are quite upset when they leave and damage the property. So, when you say you’re interested in buying a foreclosure, be prepared for some extra work and investment to get the house back into shape.

A good realtor can help you through the purchase of buying a short sale, foreclosure, or any other home for sale. Not all realtors have experience in working with foreclosures and short sales however. Be sure to ask how much experience they have in working with such properties. I am in the process of buying a foreclosure myself in Arlington, and it’s been an eye opening experience to say the least. It’s not impossible, but you do have to set your expectations appropriately.

A couple of good web sites to check out for more information on foreclosures:
http://www.all-foreclosure.com/.
http://www.therealestatebloggers.com/category/foreclosure/

Feel free to contact me to talk about foreclosures, or how you can find your next home.

Mike
571-217-1690
myfrankrealtor@gmail.com