Avoid these Mistakes when Buying a Foreclosure

Whether you’re a beginning investor or a home buyer looking to expand your options in a crowded market, distressed properties – like foreclosures – can be a great opportunity. But if you’re not prepared for the process, it can appear challenging. But that doesn’t mean you should avoid these types of opportunities.  In fact, the more educated you become on distressed housing options, the better your chances are of finding the perfect property. Especially if you avoid the following pitfalls.

#1 – Trying to DIY
Unless you’re exceptionally well versed in the foreclosure buying process, it’s not something you want to attempt to do yourself. There are professionals out there whose sole job it is to make buying a foreclosure easier for clients. Step one is to find someone who specializes in these types of sales.

#2 – Not having your finances in order
Whether you’re going for a new home or distressed properties, the sellers want to know you’re serious. This means getting preapproved for a loan and having an accurate idea of how much you can realistically spend. Don’t forget to account for upgrades and repairs in your budget!

#3 – Thinking all foreclosure options are a great buy
Many buyers and investors think a foreclosure property is the best buy because it’s listed below market value. Just like any property, you’ll want to seriously consider the condition of the home, location, expected repairs/improvements, etc. Just because it may be the cheapest option, doesn’t always make it the best.
The budget for buying a foreclosure should be set at the value of the home. If you find your budget climbing due to increased repairs and problems found during the inspection, it may be best to walk away.

Today buying a foreclosure isn’t nearly as daunting a task as it was once made out to be. Avoid mistake #1 and get an experienced pro on your side. Metrowest specializes in distressed sales and would love to walk you through the process. Contact us today!

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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