A great deal of money can be saved by purchasing a foreclosure home at a lower than average price. You can often get a better deal on these homes than you would from a bank. However, there are a few things you must know to ensure you purchase a foreclosure home at the best possible price. When buying a foreclosure home at an affordable price, there are a few things that you must know. These include how to avoid getting cheated by a scammer, what to do when you cannot find the home you want, and what to do when you finally find the house you are looking for.
To avoid being scammed by a scammer, do your homework by talking to a real estate agent. You may even want to try using the services of a national real estate company, like the MLS (Multiple Listing Service). You will probably be able to get an agent with whom you can work. Find out if they are licensed. Check to see what they charge you for their services. You should also research the companies they represent before you hire them.
Do a search online for a sheriff’s auction or trustee sale. You will find announcements of these auctions in local papers and online. There are also some websites that list information about foreclosure sales and also give free trials to agents. Some of the websites also offer information about the homes available to be sold. You normally pay at least in full at trustee auctions and then buy the home “as is,” without any guarantees. The only thing that a trustee usually guarantees in these sales is that the property was sold as the owner intended. At auctions where there is no guarantee of full payment, most buyers look for a deal that will allow them to buy the property at a fraction of the price they would have paid if they had purchased it from a bank or private lender.
Another way to save money is to look for a foreclosure home through a non-traditional real estate agent. Some companies specialize in listing foreclosure homes and others do so on a general real estate company’s website. You can ask around on local real estate boards to see if anyone has found any deals on a specific type of property. If you think you can find an agent who has the experience to handle your type of foreclosure, it may be worth the effort to ask.
You may want to find a broker or mortgage broker that offers no down payment mortgage for your home. If you have an adjustable rate mortgage, this may be a good way to save money. But note that many banks don’t offer this type of no down mortgage and so many of these brokers will require an appraisal of your home. They may require the use of their service, which means you will probably have to take out a second mortgage for the home if you take out the no down payment mortgage.
You may be able to get a better deal on the total price of your home loan if you take out a cash-out refinance mortgage for the first time. This allows you to borrow more money with less risk to yourself and to the company offering you the loan. You will still have to make payments on the loan at the same monthly rate, but you do not have to pay the total cash out until you have made the loan.