Foreclosed homes are properties that are repossessed by the lenders such as banks from a property owner who is unable to clear the debt. In a trustee sale, the lender who holds the first loan on the property starts the bidding at the amount of the loan being foreclosed. The sale of homes by banks as Foreclosures for Sale have made it possible to purchase expensive homes at cheap rates and have continuously decreased the property prices in prime areas. Bank Loans are much popular among buyers and really easy to obtain which enables buyers to purchase foreclosed homes for fresh loans.
You want to have the property inspected before the sale if possible so you know the condition of the property before you bid on it. A real estate agent may have a better chance arranging an inspection than you do. An agent will also be helpful during the foreclosure sale as auctions can be chaotic and overwhelming. Negotiating the purchase price of a foreclosed home may take a little longer than a typical real estate transaction because the process may require multiple levels of approval.
It’s also crucial that you remember that foreclosures do not always happen with homes that are abandoned or need a lot of work; sometimes, you will discover foreclosed homes that you can invest in that will be very attractive as is for families who are planning on moving to that area. Alternatively, the court may order the property sold subject to the mortgage, with the proceeds from the sale going to the payments owed the mortgage holder.
It’s fair to assume these homes are in need of severe renovations and overhauls in order for you to live in it or flip it. If you are new to the foreclosed home buying process I would not suggest a sight-unseen auction at all. The proceeds realized fro the sale go to indemnify the overall costs the previous owner of the property was unable to cover.
Most of the things that a first time homebuyer’s agent will point out to potential home buyers when it comes to homes available for sale in your area may be the things you’ll want to address upfront. Be safest way to buy a foreclosed home is to buy one that is listed with a realtor so you can request inspections. Foreclosed homes in San Diego give the best when it comes to buying and property transfers.