Q & A: Foreclosures

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  1. Should I buy a foreclosure “as is”?
  2. What should be considered when purchasing a foreclosure?
  3. What types of foreclosure are there?
  4. Where can you find foreclosures?

Should I buy a foreclosure “as is”?

A property listed “as-is” means that no concessions will be made for repairs necessary on the home. And, often with foreclosures, an inspection will not be granted prior to the sale. If this is the case, extreme caution should be taken prior to purchasing the home as there may be unforeseen and costly repairs required. Work with an experience real estate agent that can guide and educate you through the foreclosure process.

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What should be considered when purchasing a foreclosure?

Foreclosed properties are usually listed below market value, and therefore can be advantageous to buyers who are searching for low-priced deals. But, buying a foreclosed home can be a difficult and time consuming process. Buyers should educate themselves on the risks involved with buying a foreclosed home and use extreme caution when purchasing homes listed “as-is”. The condition of the home, how long the home as been vacant, the neighborhood, and the amount of money needed upfront to renovate or make repairs to the home are all factors that should be considered.

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What types of foreclosure are there?

There are three types of foreclosure proceedings – Judicial, Power of Sale, and Strict. The type of proceeding used is determined by state, as well as what is stated in the mortgage agreement. Each type requires public notice and that all involved parties be notified of the proceedings. Judicial Foreclosures are filed through the judicial court system, Power of Sale proceedings are handled directly by the lender, and Strict Foreclosures (which are rare) are lawsuits filed by the lender against the homeowner.

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Where can you find foreclosures?

Foreclosures can be found in all areas, neighborhoods, price ranges, and conditions. Foreclosures can be found in all types of markets, but are more prevalent in down markets, due to economic hardships. The foreclosure process can be very extensive, and therefore interested buyers should meet with an experienced real estate agent for guidance.

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