What You Need To Do To Get A Foreclosure

Mortgage lenders and the government are collecting more foreclosures than they can handle. Since more and more owners are failing to pay their loans, banks take the property back and have to resell the property fast to get their money back. Investors everywhere can take great advantage of these foreclosures and finding them is simple. They’re happening ACROSS the nation.

Years ago, foreclosures were rarely seen and when they were, they were located in unwanted areas. Today, they are seen in the most upscale neighborhoods. When the real estate bubble burst, it took a lot of people with it, including a lot of developers. There are complete subdivisions in some states that have been foreclosed upon by banks.

If you want to make some money in the real estate market today, you can do so by buying a foreclosure. Foreclosures are sometimes in need of cosmetic repair. People get angry as they are getting evicted and sometimes do damage to the home. Most of the damage, however, is all cosmetic. If you are handy, you can fix up the property easily enough.

You will have to be able to verify that you can purchase the property before you can even bid on the foreclosure. This means that the first person you should see is the lender. Your lender can take you through the process of getting a mortgage and issue a pre approval letter. This states that the lender is willing to loan you a certain amount of money for a piece of property. A pre approval letter is something that is needed if you want to bid on foreclosed property. The bank or lending institution does not want to work with someone who is not going to be able to buy the property.

There will be no contingencies. You will have to be ready to close. Inspections are usually done at your own expense prior to the acceptance of the contract. You should have an older home inspected for a variety of different reasons. It is well worth the few hundred dollars it will cost to do this.

You will be required to have a certified check for the earnest money. Earnest money is a deposit that you put down for the home that pretty much states you are serious about committing to purchase the home. If you back out on the contract, you will forfeit your earnest money. The amount of earnest money varies and is usually a few thousand dollars.

If you are planning on buying the home with cash, you will be required to have proof that you have the cash on hand and are ready to close. This can be simply a bank statement that reflects the amount of the cash. A cash buyer is always preferred over a mortgage buyer, even one who has been pre approved. This may put you at the head of the line.

You can then bid on the property. Remember that the bank or lending company simply wants to get back their investment. Bid, bid, bid and hope for the best. You may have to bid on several foreclosures before you get accepted.
 

Back to San Diego downtown real estate article index