Purchasing foreclosed homes is the current talk of the town. You may be able to save up to 50% by purchasing one of these properties. There are a few things to think about and investigate before you go ahead with your search.
1. Most foreclosed homes are sold as-is with no disclosures. This means that you will have to inspect the home yourself or hire a professional home inspector to make sure it doesn't have any major defects.
2. Just because it's a foreclosure does not mean it's a good deal.
3. Get pre-approved before you make an offer. Properties owned by a bank usually require a pre-approval letter from a lender at the time of offer or the offer will not be considered.
4. Make sure you have the funds to do all the necessary repairs. Typically your bank will not lend you extra money to do repairs. Some of which may be costly, such as a septic, well, roof or foundation.
5. Check for freeze damage. Especially in Minnesota homes may sit vacant over the winter without the proper winterization. In this case you may have burst pipes and/or water damage.
6. Get a REALTOR to represent you in the transaction. It's always a good idea to have an agent represent you and your best interests during any real estate deal. They will be able to use their knowledge and expertise to guide you through.
Of course there are more steps to purchasing a foreclosed home but these are a few tips from my personal experience to get you started. Contact me today to get started investing in foreclosures in the Bemidji area.
