Mistakes to Avoid if you’re Considering a Foreclosure

 

 

 

In hot markets like Denver, setting your sights on a foreclosure property can greatly expand your options as you house hunting in an area with little inventory or higher prices. There are bargains and deals to be found, but before you start the search for a foreclosure property it’s important to know how that type of property sale differs from traditional sales. Knowing what you’re in for when buying a foreclosure property can help you avoid costly mistakes, prepare you for the road ahead, and make sure your experience is as seamless as possible.

  1. Don’t go it alone- Buying a foreclosure can be a more challenging than traditional sales, but the rewards are well worth it. But because it’s not a traditional sale, it’s imperative to find a real estate agent versed in the complexities of the foreclosure market. Whether you’re looking at a pre-foreclosure, short sale or bank-owned properties, you’re going to need the guidance of a professional (that’s where we come in!)
  2. Don’t set limits- It’s totally okay to go into your property search with the intent to purchase a foreclosure, but those are the only homes you should check out. Yes, there are some competitively priced foreclosures on the market, but the same can be said of traditional listings. There are also short sale options as well as REO (bank owned) properties to consider.
  3. Educate yourself- Sure, you’ve got a pro in your corner, but you’re still going to have to do a little research on your own. Know how much you can spend. Know the neighborhood where you want to buy. Target a specific neighborhood or two to avoid becoming overwhelmed by listings.
  4. Don’t skip the inspection! Foreclosure properties can often be sold as-is, so if there are significant issues you’re going to want to know before you buy.  Tag along while the inspector is looking at the property. Ask questions. Take notes. Most inspectors charge $300 to $500 for their services; but you’ll need to figure out how much it’s going to cost to fix the issues.

Ready to find the perfect foreclosure property for you or your family? Contact Metrowest today and start the search! Our experienced professionals specialize in these types of sales 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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