How to Buy Foreclosured Property in the United States

This explains how to locate, bid and possibly buy foreclosured residential property in your local United States area, without all the hype of TV ads. No courses to take or books to buy. Foreclosure is one way of sacrificing property to repay a forfeited bank loan. Other ways are government auctions.

Steps

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    Read local newspapers for announcements of "foreclosures", usually in the "public notice" section.
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    Research online information through search engines. Take advantage of any "free trials" from the super-hype companies.
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    Phone any government information phone numbers, like the "211" systems available in most towns. Tell the operators what you are looking for and ask how to find out more. Follow up with their recommendations.
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    Locate several properties, find out how they will be resold: auction, bids, and the procedure for inspection/ bidding. ie money orders or cash only.
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    Look for Government auctions online.

Tips

  • Be aware of houses listed for sale for a long period of time.
  • To locate property, drive around and look for clues of neglect, like overgrown lawns, windows open or closed all the time. Mail piling up may or may not be a sign since it may be owner-occupied.
  • There may or may not be signs on the property about action being taken, after any "for sale" signs are removed.

Buying A Previously Foreclosed Home

Buying a previously foreclosed home can be a good investment to turn around for resell or as a rental property. However, the prospective buyer should take care to perform careful inspections of both the paperwork, and the property itself. Any properties that have been ill kept or that need extensive repairs should be avoided. Even though HUD properties are offered to local government and people who commit to live in the houses for one year before the houses are offered to investors, many are still left as options. Investors are usually encouraged to buy them and they can be a win-win situation both for the investors and for neighborhood improvement. Buying A Previously Foreclosed Home

Warnings

  • Pre-purchase inspections are not always allowed. Some are "buyer beware". Remember that the previous owner(s) may have trashed the property, knowing it was going into foreclosure.

Article Info

Categories: Buying Property