A foreclosure is one of the things hated the most by individuals who are not yet done paying for their home or have used their home to get a mortgage loan. A foreclosure happens when you fail to pay the balances on the principal amount as well as the interest. The bank or lending company will give the individual enough time to get money for payment. Failing to pay will result to loss of home. However, other people’s loss may be someone’s gain so checking foreclosure listings is highly recommended to people who are considering buying a used house but want to get them for lower prices. You can check foreclosure listings, go to auction sales and talk to a real estate agent for this.
Checking Foreclosure Listings
It is very easy to find foreclosure homes. There are many foreclosure listings online. These foreclosure listings may not be accurate all the time (i.e. some properties may already be sold but still in the list) because buying and selling foreclosure properties happen so fast but it’s worth the try. You may also find advertisements on your local publication.
Going to Auction Sale
You may also go to auction sales if you cannot find a property that you like in the foreclosure listings. If you do not know any foreclosure auction sale, you can go to a courthouse and ask the clerk if there are sales. You should be able to know, at least, when the auction sale will be held.
Finding properties in auction sales may confuse you. Some properties have the bid cover the mortgage balance wherein the lender or the bank buyout the property. In such case, you will need to pay the balance on the auction day and financing is rarely accepted. You should have your cash or check ready.
One of the disadvantages of auction sales is that there may be several individuals interested in the same property. If this is the case, expect that the price will go up. Be careful because you might pay more than you should.
In addition, auction sales do not allow professional house inspection. The properties are sold as they are. This is a disadvantage for the buyers because they cannot identify some flaws that could have reduced the price.
The auction sale isn’t for you if you want to inspect the house before purchase and if you want to use financing, which are not made available when buying a property in the foreclosure listings.
Talking to a Real Estate Agent
However, not all some foreclosure properties are advertised so it is better to talk to a real estate agent. He or she may know some foreclosure homes that can be a good deal for you and your budget.
Going Directly to the Owner
It is hard to find owners of foreclosure homes unless they are your friend or acquaintance so you will surely go back to foreclosure listings. Nevertheless, you can skip the bank or the agent and make a direct offer to the seller. However, you will need the bank’s approval if your offer is not enough for the mortgage balance.