So you have heard about the increasing numbers of foreclosure homes, headlines in local newspapers, maybe seen a sign up in a neighboring street? But that's as far as it goes, you know little about the process, 'I'm alright, Jack' and can't see the need to know more. An alert to those lucky ones amongst us, who, facing that relocation interstate, or pressure from a growing family, really want to seize the moment and step up into more of a substantial family home.
Faced with new ideas and opportunities, many of us hesitate to check them out through a of fear of the unknown, preferring to stay in a comfort zone of doing it the same way as our parents did, building home equity over the years through a little price appreciation and religiously paying down the mortgage. Should you now have to sell your existing home because job prospects dictate, or you have been blessed with a growing family who need more space, then you are going to have to venture out into today's real estate market. In many cases that means the buyer is in the best seat, and is bombarded with unexpected choice. Don't overlook the advantage of buying a family home in foreclosure at that extra discounted price and boosting your equity overnight, simply because lack of knowledge and preconceived ideas are roadblocks.
My agent won't want to help me out
Look for a realtor who already displays listings of foreclosures as a part of his/her real estate inventory. A realtor experienced in the particular requirements of form filling, standard lender requirements, the particular policies in your region of the various banks, mortgage companies with regard to pricing and marketing REO property, the particular rules and regulations of HUD and other government bodies who end up owning foreclosed homes, is going to be an invaluable resource, as well as a well informed neighborhood scout.
I can get pre-approved for a new home purchase, but who will lend on a foreclosure?
Lenders provide mortgages based on your FICO score and their appointed Appraiser's value. That's their business. They don't discriminate on the origin of the property, other than where the appraisal report highlights matters affecting value.
That's just two examples of what we might call the bad habit of procrastination when facing unexpected hurdles and new ideas. Think about it, life is about learning, and you can enjoy the 'good life' if you take advantage of all opportunity in real estate today.
