How much does it cost to buy a foreclosure?

by admin on August 28, 2010

Question:

How much does it cost to buy a foreclosure?

Answer:

Buying foreclosed homes really gives an opportunity for people to purchase a home at a lower cost. In this situation, lenders try to sell the property and collect the lost or owed money. When purchasing a foreclosed home, there are certain steps involved. The first thing that you must do would be to find a property or a home which you are interested in buying.

You can buy a subscription to a foreclosure listing or get a listing from a real estate agent. Most of the time, foreclosed homes are sold through auction wherein the one who bids the highest amount gets the home. The lender usually wins the auction and place the homes for sale on the open market and makes up for the losses made on the previous loan. The third steps involves you making an offer on the foreclosure home, either to the lender or to the trustee. To help you navigate this process, work with an agent who is experienced in this business. Remember that foreclosed homes are vacated on less than hospitable terms so repairs may be needed.

Therefore, a physical inspection of the home or property should be done before making an offer or bidding on a home. Remember that there are no fixed prices for foreclosed homes. Buying them through auction may give you a deeper discount than buying on the market. However, there is no guarantee that you will win the auction.

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