Buying a Foreclosed Home, What to Know!

by : James Boyer

There is an excess of foreclosed properties today. Many banks are looking to liquidate their stock of foreclosed homes quickly. Here are some things you should understand when inquiring on these properties:

1. Banks do not respond as quickly (usually) as home owners. Banks could take 2-4 weeks before giving a response.

2. Banks like multiple offers. Hence the delay in #1 above. They will see if they can get multiple bids and accept the best one.

3. Bank owned (foreclosed) property will not usually (in NJ) be ready to live in. In NJ prior to moving into a house after closing you will need to obtain a certificate of occupancy from the local government. Since most bank owned properties were foreclosures, many of them have been damaged by previous home owners. This means you may likely have to do some repairs prior to being able to move in (or resell)

You can normally get a very good deal on these foreclosed properties. Here are a few items to keep in mind:

1. I strongly suggest partnering with a REALTOR in your area to help you to determine the market value of the foreclosed home if it were in good to great condition.

2. I also encourage you to bring in skilled home inspectors / electricians / plumbers to get an idea of the opportunities and expenses you will likely encounter with the house.

3. Now get a calculator and decide if the foreclosed house is worth the time or?investment. Certainly your calculations will vary depending on if you are looking to resell, rent or live in the house.

If you have the patience and time?to find the right home and the vision to see the homes potential over and above its current condition, you can?buy a great house for a great discount. Your local REALTOR will likely know about all the foreclosed homes in your area, call him or her, they are a great resource!