Top Questions to Ask Before Buying a Foreclosure

In Denver’s tight real estate market, many buyers are considering distressed properties (foreclosures, short sales, bank owned properties) to help expand their inventory options. If you’re considering purchasing a foreclosure property check out our list of top questions to ask before taking the plunge. There are certainly deals to be found, but these questions will help prepare you for the process.

  1. Is now a good time to buy a foreclosure?
    A real estate agent who specializes in foreclosure sales will be able to gauge the foreclosure climate and help you select the property that best fits your budget and needs.
  2. What are the first steps to take? Get preapproved for a loan before you start looking. If you’re thinking of buying a foreclosure as an investment or second home, understand that financing the home may be more difficult and more expensive than financing a primary residence. Lenders typically charge higher interest rates and require a larger down payment for investment or second homes.
  1. Can I tell a good foreclosure from a bad one?
    Certainly, there are great deals in many markets for both investors and buyers looking for a primary residence. For foreclosure properties, in particular, buyers need to be mindful of unpaid liens, including mortgage debt, taxes, construction loans, home equity lines of credit, and possibly a second or third mortgage. Any or all of these financial obligations could become your responsibility when they purchase a property in foreclosure. ­­

Buying a foreclosure can be a great way for first-time buyers to break into homeownership – especially in cities like Denver with low inventory and high prices. While there are precautions to take, buying a foreclosure isn’t all that much more challenging than a traditional sale. Metrowest specializes in these types of sales – give us a shout today and we can 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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