BUYING FORECLOSURES

I get calls all the time about clients wanting to buy foreclosures, here are a couple of things to keep in mind.

• The first step is to get pre-qualified if you are not a cash buyer. After you submit bid, you and your agent have 48 hours to get a cashier check with earnest money, and proof that you can get the money - a letter from the bank, or proof of funds if it is a cash offer.  This also lets you know beforehand how much money you can spend.
• Another important thing to keep in mind is timiliness is key. Most of the HUD homes have a period of time that it can be sold to owner occupants only.  After this period is over it is open to Investors and there is usually multiple offers going in from multiple sites. Being ready to jump is the key.
• Remember these homes are sold as is, neither the listing agent, selling agent or anyone knows the condition of the home.  A certified home inspector is very important in determinig the condition of the home.
• Also zoning, septic/sewer systems, water supply has to be verified, it is up to the buyer to do this. It takes a little time sometimes.

There are many deals out there to be had, you just have to be smart and use a qualified agent that has sold foreclosures before.