What should a person expect when purchasing a foreclosure home?

by admin on August 28, 2010

Question:

How does one deal with a foreclosure? Is the buyer allowed to look inside the house and should one go to bank if interested in buying a foreclosure home.

Answer:

Basically, buying a house undergoing foreclosure is the same as buying a conventional purchase, except that they are nearly always sold “as is” by the lenders. Before purchasing a house in this situation, a thorough inspection of the property is recommended, either professionally or by trusted friends who know what they are doing. You may inspect the property on your own but make sure to know the details about the home thoroughly.

In this business, you are expected to either pay cash or through financing as you would on any other home purchase. If you have good credit, it would be best for you to get a loan or financing. This would be more convenient and less risky than paying the total amount through cash. If you are thinking of buying the house at the sheriff’s sale of the foreclosed property, be aware that the lender will have a representative present. The representative will make sure that any final bid will exceed the total amount owed by the defaulting seller to the lender. Since going to an auction is a very risky process, you may want to buy a home which is still on its pre-foreclosure stage. This way, the risk is not as great as in the former and the chances of you getting the house is higher.

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