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Learning How to Buy Foreclosures

Some homebuyers avoid buying foreclosures because the process seems more complex than buying traditional real estate. However, the process is actually quite simple. Even a first-time homebuyer can successfully purchase a foreclosure home.



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Find Properties that Interest You

The first step in buying a foreclosed home is finding some potential properties. Listings of foreclosures on reliable sites such as ForeclosureListingsSource.com are a good place to start because you can browse these listings easily and quickly. It is useful to begin by looking at all possible foreclosures within a specific area and then narrowing your search based on specifics such as house price or specific amenities. Once you have narrowed down your search to a few foreclosed homes that interest you, you will want to learn more about the properties. ForeclosureListingsSource.com has listings with detailed information about each property so that it is easy to find out more.

Secure Financing and Professional Help

Once you have found a few properties that interest you, you will want to approach lenders and secure financing in advance. This is important because it will show you how much house you can afford. It will also ensure that when you find a property you really like, you can move quickly. The best value HUD homes and other foreclosures often sell very quickly, so having financing ready is important if you hope to compete with other homebuyers.

You may also wish to consult with a real estate agent when buying foreclosures. If you want to buy HUD homes, an HUD-approved real estate agent is necessary, and even if you are buying other foreclosures, a real estate agent can help you with the buying process and can even help you uncover unadvertised foreclosure properties in your area.

Contact the Sellers

Once you have secured financing and are ready to buy, you will need to contact the sellers of the property. Who you need to contact will depend on what sort of foreclosure property you are considering. If you are interested in HUD homes, you will need to contact an HUD-approved real estate agent. If you fancy an REO property, you will need to contact the lender who owns the property or the representative of the lender. Some foreclosures list a trustee as the contact person. ForeclosureListingsSource.com makes it easy to determine who you must contact - the site lists full contact details for each property.

If you are considering buying a pre-foreclosure, you will likely be dealing with the homeowner directly, and you will need some additional tact and negotiating skills. Homeowners who are trying to stop the foreclosure process are often anxious and may be embarrassed. They may be dealing with multiple investors who are trying to help. It is best to contact such homeowners by mail and to proceed with as little aggression as possible. Try to be sensitive to the difficult time a homeowner is having. If a homeowner expresses interest in your help, explain all the homeowner's options, including a short sale and other solutions.

You will need to carefully research any foreclosure you wish to purchase. Most foreclosures are sold with no warranties of any kind, so it's important to secure an inspection and an assessment before you buy. Just because it's a foreclosure does not mean it's a bargain, so evaluate the total costs of the property purchase carefully and always weigh your options.

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