If you are in the market for a residential foreclosure as an option to owning property, consider that the process of buying and owning a foreclosure will be significantly different compared to going the typical resale property route. In our first article
, we touched upon some important factors. Here are more to consider before you decide to purchase that foreclosure.
4. Do your homework
Before purchasing a foreclosure, due diligence is in order. Check out property listings online to see which ones best fit your criteria. You may also want to consider working with an experienced real estate attorney or agent, especially if this is your first time to purchase a residential property. When you find one that fits your lifestyle and living criteria, find out the circumstances of how the property became a foreclosure. You can do this through your agent, who will have access to the property history and can help do some of the research on your behalf, the lending establishment or even the previous owner.
5. Calculate the cost
At the end of the day, the reason for purchasing a residential foreclosure is because it is ideally a bigger bargain compared to a typical resale property. In order to do this, you will have to add the estimated fixing costs, any liens against the property and finally subtract from the total market value of the distressed property. Once you have computed all the costs that you may have to encounter, you may approach the owner of the foreclosure to make your offer.