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Bob Schwartz
San Diego
real estate broker
Certified
Residential Specialist
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What You Need To Do To Get A Foreclosure
Mortgage lenders and the government are collecting more foreclosures than
they can carry. Since more and more owners are defaulting on their loans,
banks take the property back and have to resell the property quickly to get
their money back. Investors everywhere can take great advantage of these
foreclosures and finding them is simple. They’re happening ACROSS the
nation.
Years ago, foreclosures were uncommonly seen and when they were, they were
located in unwanted areas. Today, they are seen in the most upscale
neighborhoods. When the real estate bubble burst, it took a lot of people
with it, including a lot of developers. There are entire subdivisions in
some states that have been foreclosed upon by banks.
If you want to make some money in the real estate market today, you can do
so by buying a foreclosure. Foreclosures are sometimes in need of cosmetic
repair. People get angry as they are getting evicted and sometimes do damage
to the home. Most of the damage, however, is all cosmetic. If you are handy,
you can fix up the property easily enough.
You will have to be able to prove that you can purchase the property before
you can even bid on the foreclosure. This means that the first person you
should see is the lender. Your lender assist you through the process of
getting a mortgage and issue a pre approval letter. This states that the
lender is willing to loan you a certain amount of money for a piece of
property. A pre approval letter is something that is necessary if you want
to bid on foreclosed property. The bank or lending institution does not want
to work with someone who is not going to be able to buy the property.
There will be no contingencies. You will have to be ready to close.
Inspections are usually done at your own expense before the acceptance of
the contract. You should have an older home inspected for a variety of
different reasons. It is well worth the few hundred dollars it will cost to
do this.
You will be required to have a certified check for the earnest money.
Earnest money is a deposit that you put down for the home that pretty much
states you are serious about committing to buying the home. If you default
on the contract, you will forfeit your earnest money. The amount of earnest
money differ and is usually a few thousand dollars.
If you are planning on buying the home with cash, you will be required to
have proof that you have the cash on hand and are ready to close. This can
be simply a bank statement that shows the amount of the cash. A cash buyer
is always preferred over a mortgage buyer, even one who has been pre
approved. This may put you at the head of the line.
You can then bid on the property. Remember that the bank or lending company
simply wants to get back their investment. Bid, bid, bid and hope for the
best. You may have to bid on several foreclosures before you get accepted.
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