Thousands of homes go into foreclosure in the United States every single year, which means that there is currently a fairly healthy market for those who want to purchase such properties, either with a view to living in them and to sell them on for a profit at a later date.
Before you can get started on that though, you are going to need to know where to look and what you should be looking for before you commit any of your cash to a sale. Here we offer some advice on buying foreclosed homes using the internet.
Look To The Banks
Your first port of call should be the websites of larger banks. As many of them act as loan providers for the people who previously owned the home, they will also have an interest in getting the home sold again once it has been foreclosed on.
As such, many institutions, like Bank of America, maintain their own property listings that highlight homes that are currently available for purchase. This also acts as one of the more reliable places to look, as you will be getting the property straight from the people who foreclosed on it, rather than having to go through a third party to find out about it. Further properties can also be found on the Fannie Mae and Freddie Mac websites.
The Stage Of Foreclosure
If you are looking for a sure thing out of your purchase then it may be wise to avoid any properties that are in the early stages of foreclosure. After all, it is entirely possible that the current owners may be able to pull themselves out of the fire and raise enough funds to keep the property.
As such, you should always check the status of any property that catches you eye, so that you can be sure that it is completely available. Few things are worse for a property buyer than setting your heart on something, only to have the purchase fall through at the last minute.
This should be an obvious point, but it is still one that bears repeating nonetheless. After all, any property that is in foreclosure is there because somebody was unable to afford the costs associated with that house.
Make sure that the price listed from the property is within your budget before you even think about putting a bid in. It may be worth avoiding the property altogether if the price reaches the upper limits of what you can afford, as any such properties will require some extra work on them after purchase. Speaking of which…
Find Out What’s Wrong
Very few properties are perfect and you are well within your rights to have an inspection carried out on any foreclosed property that catches your eye. Don’t simply trust the online listings that you read and keep an eye out for any suspicious language that is being used. If it seems like too many potential negatives are being spun into positives, then this is likely the case. If nothing else, such a situation will work to your advantage come time for negotiations.