Buying Foreclosed Homes
Before you can even consider making an offer on any foreclosed properties, you must ensure that you are working with a real estate agent that is able deal with banks and other institutions that would own such properties.
Remember that you will be purchasing the property from an institution, rather than an individual, so it is important to work with somebody who has experience in the area. If you don’t you may find that you end up having to wait a lot longer to make the purchase, even if you already have the money to pay for the property.
Financial institutions are looking to sell off their foreclosed homes, but at the same time they want to be able to ensure that the new owners of the property will be able to make the relevant payments. Being able to offer a healthy down payment is a good start, but showing that you have been able to secure a loan beforehand shows that a lender holds you in good stead, which means you have more chance of making a successful offer on a property,
Of course, all of that is advice on what you should do to identify and be prepared to purchase a foreclosed home. If you have your eye on a property that is undergoing foreclosure, what you really want to know is how long you are going to have to wait before you can put an offer in.
Unfortunately the answer is not cut and dry, as it really varies from state to state. Usually you will need to wait a minimum of around four months for all of the necessary paperwork and evictions to be carried out, however that process can drag on for years if the occupants fight the foreclosure or there is a lot of red tape to cut through.
Once the institution that is doing the foreclosing has control of the property, you can expect it to be put up for auction fairly quickly if they don’t receive an offer to buy. Try and keep track of new foreclosures to get in early, as most will look to go to auction within 21 days of getting control.