Why should I consider buying a foreclosure?

Denver’s housing market is hot right now, to say the least. So how does one go about purchasing a home where prices are increasing and inventory isn’t keeping up the pace?

Distressed properties, like foreclosures, can be an ideal solution for people who want to break into homeownership, but may not be able to afford high prices in a booming city. If this describes your situation, read on to find out if buying a foreclosure may be the right option for you!

The first thing to understand is there are many types of properties that are generally known as “foreclosures.” A “pre-foreclosure” is a home that’s in danger of falling into foreclosure, but is still owned by the homeowner. A “foreclosure” is a property that will be sold or repossessed by a creditor or a lender to recover the amount owed on it.

Why consider buying this type of property?

  • You may be able to purchase a home at a lower-than-market-value price. If the home is in pre-foreclosure, the homeowner is looking to sell the home to avoid going into foreclosure. Typically, these homeowners are in a hurry to sell, which puts the buyer at an advantage.
  • Banks are also often willing to offer foreclosures at a discount, since the longer they hold these properties, the more it costs them in terms of taxes, maintenance, etc.
  • Foreclosures can be found at all sorts of price points (starter homes, luxury homes, etc.) and sometimes are only in need of minor repair or upgrades.
  • With some sweat equity, repairs and upgrades, a homeowner can turn a foreclosure into a home and see some appreciation in the property’s value.

Are you considering purchasing a foreclosure or other distressed property? Contact the pros at Metrowest– our experienced agents specialize in this type of sale 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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