ForeclosureWise
Be Wise In Your Real Estate Investments
You've found a property now what?
Who do I contact?
How do I finance it?
What it is worth?
What about repairs?
Who do I contact?
The person you would contact can vary depending upon the agency or lender who owns the property. With most bank/lender owned properties (REO) you would contact the real estate broker hired to market the property. In the case of HUD and VA properties you can contact any agent who is registered to make offers on HUD and VA owned properties. Many sites provide the contact information for these real estate agents and brokers.
How do I finance it?
Financing foreclosed properties can be challenging. Lenders want the property being used as collateral to be in marketable condition in case they have to foreclose. There are; however, ways around this problem. In the case of lender owned properties you might want to try having them provide financing. In some cases you can even negotiate a loan to fix up the property. Another avenue is purchasing a property using a HUD 203K loan, which will provide money to purchase and make repairs or improvements. The last main option is private financing. Caution is the key here since interest charged is in excess of market and the terms are short term. Whatever options you choose make sure you understand the real cost of the financing so that you are not the one being foreclosed on.
What it is worth?
Knowing the market value of any real estate purchase is crucial when investing. There are many resources that can give an indication of a property's worth. The first is a local real estate agent who has access to market information including recent sales. The second is the Internet which has many web sites that provide information on sales, listings, and neighborhoods. There are also government sources which post sales of properties along with local real estate information. When making an offer on a property an investment in an appraisal report completed by a licensed real estate appraiser can be helpful. Analyze the data by comparing the subject to local sales and listings of similar properties. At this point, along with an agent's professional guidance, a sound decision can be made on what to offer on the property.
What about repairs?
Foreclosures by their vary nature tend to need repairs. People who are being foreclosed upon usually do not complete the normal maintenance required for any home. Having a good sense of what certain repairs cost in both time and money can be a valuable tool when purchasing foreclosures. There are many resources on the internet that can help when determining the cost of certain repairs. It is also helpful if you can have a professional home inspection before you make your offer.