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A Buyer's Guide to US Foreclosures

February 22, 2012 | Comments: 0 | Views: 129

The Foreclosure Process

Since the fall of the housing market in 2006, the United States has been inundated with millions of homeowners that defaulted on their mortgage obligations. The inability of the real estate property owners to pay what they owe to the banks and lending institutions has forced the repossession of their property through the process of foreclosure.

It is the norm to give the distressed homeowner ninety days to be able to come up with the money required to pay their mortgage obligations. If they are unable to do this they then will receive what is called a Notice of Trustee Sale wherein a court appearance is determined in order for the bidding of the distressed property to commence.

What Buyers Should be Aware of in US Foreclosures

If you are interested in purchasing foreclosed property in the United States you must be aware that the whole process can be quite complicated. If this is your first foray into the US real estate market, you may want to enlist the services of a reputable real estate agent. One who is adept at the intricacies of purchasing foreclosed properties is recommended. A good real estate attorney is also recommended so that the legal aspect of the transaction may be done without any hitches. You must understand that there are instances where the previous owners of the property may not be very cooperative in giving up something that they have heavily invested in. It is likely that some of them may put up a legal fight in order to keep the home in their possession.

Tips in Buying US Foreclosures

If you have located a foreclosed property that you are interested in buying, try to do some background investigating before you cough up the money to either the bank or the distressed homeowner. You need to inspect the property fully. Make sure that the building is structurally sound as well as ascertain any repairs needed if any at all. You may encounter some significant structural damage on foreclosed properties that are being sold really cheap especially if they have been on the market for more a year or even more.

What you should be looking out for is roof damage and infestation by termites or other insects as repair and renovation may eat up a lot of your planned investing money and eventually your projected profit.

You also may want to check out if the property has some outstanding liens that need to be paid because once you assume ownership you will now be the one legally obligated to pay for these. A very important aspect that you need to consider is the neighborhood where the property belongs. The overall value of your purchase will depend on the quality of the neighborhood. Be sure to check if crime rate is rampant or low. Check out the density of schools and hospitals as well as access to entertainment and dining amenities. All of these will play a role in the way the property will be appraised once you decide to sell it later on.

Source: EzineArticles
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