3 Mistakes to Avoid when Buying a Foreclosure

conceptual stop sign with word foreclosure over blue sky

Avoid Foreclosure Mistakes

In especially hot housing markets like Denver, many buyers are considering non-traditional sales to secure a home. Buying a foreclosure property can be a great way to break into real estate for first time buyers and beginning investors alike. If you’re considering a foreclosure property as a home or investment, check out common mistakes to avoid below!

Mistake #1 – thinking all foreclosed homes are bargains
Remember that the party selling the property (lender, government agency, etc.) wants to clear its inventory. The home’s condition is not their concern. Be prepared to do your homework and hire a pro to help navigate through the process.

Mistake #2 – over-bidding
Foreclosed-home buyers must know area home values, condition of nearby properties, neighborhood trends, street noise, airplane traffic, zoning and other issues that affect the property’s value. Sometimes bank-owned REO properties are priced below market value to attract multiple bids and drive up the sales price.

Mistake #3 – skipping an inspection
Only a licensed home inspector can identify problems from electrical wiring or plumbing to radon or pest infestation to serious structural or system problems. If you don’t have inspections conducted on a property prior to making a purchase offer, you’ll want to include an inspection contingency in your contract.

Ready to start checking out foreclosure properties in the Denver metro area? Contact Metrowest today – our experienced professionals would love to help you get started

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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