Avoid these Mistakes when Buying a Foreclosure

Due to their lower price points, it’s no wonder that purchasing a foreclosure is an appealing option for many would-be home buyers. While not the same as a traditional home sale, buying this type of home doesn’t have to be as challenging as you might think, but it helps if you know what pitfalls to avoid. Check out the tips below to ensure your foreclosure buying experience is a seamless as possible.

  1. Know that you don’t know it all
    The first mistake most homebuyers do is going through the process of purchasing a foreclosed home without even consulting a real estate professional. The money you think you have saved from paying an expert is not even enough to cover the significant repairs and unforeseen costs that a foreclosed home can come with. In other words, get a pro on your side.
  2. Skipping the inspection
    Buying a foreclosed home that you have not thoroughly inspected is a huge mistake that can have serious repercussions, especially in your finances.
  3. Going over budget
    Set a firm maximum price that is within your budget and is nearest to the actual value of the foreclosed property. Purchasing more than what you can realistically afford can cost you your peace of mind and sanity.
  4. Having eyes for only one property
    Don’t fall in love with a property too soon. Emotions come and go, but poor financial decisions can last a lifetime. Don’t think that the property only needs a small amount of repair when in reality it is beyond what you can afford.
  5. Thinking only about the short term                                                                              You have to take into consideration how a particular foreclosed home you want to buy will fare in the market in the coming years. If it’s likely to decline further in value, then perhaps it’s not as great of an option as you thought.

Ready to check out foreclosure properties in the Denver area?  Contact Metrowest today – we specialize in these types of sales and would love to help you start the process.

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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