Buying Foreclosures

Buying a Foreclosure can be a great way to purchase a great property at a great price.  Here are a few things you should know when you look at Foreclosures:

• They often come "AS IS"- Ask your REALTOR if the home is being listed as needing to be sold "AS IS."  Many banks frequently state they are not willing to make any repairs or enhancements to the property, so you will want to ensure that all needed repairs are things you will be able to fix after purchasing the home.  The good news is, while many foreclosure homes do need a little TLC from a new home owner, the banks often prices these homes accordingly - giving you a chance to buy the home at a great price.
• Not all financing works for every foreclosure home - Some loan products, including many government backed loans require a home that you purchase be in move-in ready condition without serious deferred maintenance issues.  The condition of a foreclosed home can range from great to poor.  If the home does not qualify for the type of loan you want to use and the bank is selling the home "AS IS," some foreclosures might not work for you.  An experienced REALTOR and your lender can advise you on things to watch out for that might prevent you from getting your loan (for example peeling paint or a bad roof).
• Homeowners may get priority - Some foreclosures, like many HUD homes and Home Path homes, give priority to buyers intending to make the home a primary residence before allowing investors to purchase the home.  Your REALTOR should be able to tell you if that is the case for a home you are interested in as well as when deadlines are for owner occupied offers to take priority.

At Team Tobiason we are REALTORS with years of experience with bank owned properties.  We have been trained on the HUD Home Buying process and have even purchased bank owned homes ourselves.  Give us a call and we would be happy to walk you through the process of buying a foreclosed property.  (208) 280-9710