Buying a Foreclosure? 3 Tips you need know

helpful tips

Foreclosures aren’t as common as they were at the peak of the housing crisis; however, they do still happen and there are definitely great deals to be found. Foreclosed properties are houses whose owners were unable to pay the mortgage or sell the property, and as a result, the lender assumed ownership and is now trying to sell it to recoup some of its costs.

These properties are often listed below market value and can save buyers a nice chunk of change. But only if you do your homework.

Check out the tips below to make sure you’re getting the best value for your money when buying a foreclosure.

  • Research how long the home has been vacant. You’ll want to find out if it has endured freeze and thaw seasons unattended, or experienced anything that may have caused significant structural damage.
  • Hire a home inspector to fully check out the home for major problems. You can also ask the inspector to give you an estimate of how much money it will take to make repairs.
  • Also hire a professional to conduct a title search. This may help you avoid unexpected financial issues down the road. For example, if the IRS has a lien on the property for back taxes, that debt doesn’t follow the owner – it sticks with the property, making the new owner (you) responsible for repayment!

The process may sound a bit daunting, but if you hire a real estate pro that’s experienced with these types of sales, they can help navigate the way and get you the best value for your money.

Contact the team at Metrowest today – we specialize in foreclosed and distressed properties and we’d love to help.

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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