Foreclosures: 101

Are foreclosures for you?

Have you been thinking about buying foreclosures?  Even if you are a seasoned pro, it is always best to have the assistance of a licensed real estate broker who has the experience and knowledge to see that you are not only the winning bidder, but also the happy owner of a property that will yield you maximum equity and profits.

Buying foreclosures can be a way to successfully build a portfolio of cash flow properties but the potential exists for multiple headaches and problems during the process.  Also known as HUD homes, bank owned properties, distressed homes and short sales, foreclosures are available to qualified buyers in most towns and cities of all sizes and even in rural areas far from larger communities.  Knowledge about the area and market valuations is of utmost importance when considering the purchase of a foreclosure.  Your broker can give you the necessary information to make wise decisions during the bid process.  Choose someone who has a great deal of experience in successfully closing similar transactions.Historically, the inventory of foreclosures ebbs and swells, but if your agent has been in business for a reasonable time, he should be able to guide you in knowing what you should offer and what you can expect in return should you decide to resell the home.  Expect large bidding pools, bids that exceed list price and being at the mercy of the selling company.  It is unlikely that the transaction will be handled locally and most of these “as is”  sales are actually done electronically — another reason to have a savvy, technologically adept agent.

Before you enter the process, take time to acquire the necessary documentation and information to start properly.  I have been handling foreclosures for 30 years and know what you should expect.  Let’s talk and get you on the road to being the winning bidder on the next great foreclosure you target!