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What You Need to Know About Buying a Foreclosure

May 24, 2012 | Comments: 0 | Views: 149

In today's housing market there are some amazing deals on homes that are in foreclosure. Your dream home is may be in your reach if you purchase a short sale or a foreclosure. There are a few different aspects to understand when it comes to buying a foreclosure. This article will outline the process.

Approval Letter

When it comes to foreclosures, you must receive an approval letter from the bank first. This means that you go to a bank and see if you would be approved for a home in your price range. You will need to do a little research to see how much you can comfortably afford. The banks will not even look at your offer without the approval letter.

Foreclosure vs. Short Sale

There is a difference in how foreclosures and short sales are handled. There are a few things to remember about each process based on which type of home you are want.

Foreclosures go through the bank. The great thing about foreclosures is that you will get an answer very quickly. The bank knows exactly how much they can accept on the home. Also, the longer the house is on the market, the lower price they can accept.

Short sales are a bit different. The real estate agent will let the bank know the offer. The turn around time is significantly longer than a foreclosure. It could be well over a month before you receive an answer on your offer. It takes patience in order to find the perfect house in a great price range.

Satisfactory Inspection

When you put in an offer to the bank you must ensure that it is subject to a satisfactory inspection. With banks, they will not give warranties or guarantees on the home. They want to sell the home and be done. You are essentially getting the home as is. This is great as long as it is in good condition. I would also be sure that you have the utilities turned on to ensure they are working as well.

Be Patient

In this housing market, sellers are very motivated to sell their home. This is not true with distressed properties. The banks are not motivated sellers. They are a bank with a desk full of files. Your approach will be very different than when working with a bank versus a seller. Your patience will win out in the end.

My name is Monte Mohr and I am a realtor that specializes in new homes on arno road.

If you are looking for one of the top If you are looking for one of the top Find Nashville Tennessee Real Estate feel free to contact me directly at (615) 300 - 8393.

Source: EzineArticles
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