正文
Several aspects:
1. About the house.
That fact that it's in foreclosure means the owner doesn't have the money+time to take care of the house. So, it's probably in a bad shape. Plus, owner might be mad, and cause additional damage. I've heard people sell all appliances before foreclosure. You have to be prepared to tackle that in terms of mind/money/effort.
Another thing, it's hard to do an inspection before you buy. But if you pay the owner few bucks, they might let you, if they are still there. If you can access the house, get a licensed home inspector. For beginners, it's more important to know the condition of the house before deciding.
If it's your first house, get the help of a good buyer agent is important.
Find out all you can find about the house, especially current mortgage. This might be public record. With the current principle, + some unpaid interest, late fee, legal fee for foreclosure, this would what the bank wants. You may get it cheaper, or higher depending on the market condition. Your best shot would be if this is the 1st lien foreclosing, and 2nd gets wiped out. This is your profit.
You have to know your financial situation, that you have enough buying power to close the house. So get a pre-approval from a good loan broker. This is important, because the auction is definite. If you can't get financing, you'll lose your earnest money.
2. The process
Best advice is to go to the auction several times before your auction. It'll prepare you on how it goes, even where it is.
Have a clear mind about the value of the house, and have a definite amount of max that you'll pay. Never go over.
The auctioneer is a professional. He has seen all sorts of people, especially beginners. So he'll take advantage of you. So you have to know what you're doing, especially your highest amount.
The process goes quite fast, you can't think at that time. It's either yes, or no.
You need a cashier's check payable to yourself for the earnest money.
3. Closing
After the auction, you have to act fast to get your loan approved. Where I live, the auction has to be ratified, which takes minimum 1 month. After that, you want to close as soon as possible, since the bank charges you high interest (~8%) on the remaining balance of the entire purchase price.
These are what comes to mind. I'd like to see other folks chip in and add comments/suggestions.
Hope this helps.
www.sunskitehomes.com
1. About the house.
That fact that it's in foreclosure means the owner doesn't have the money+time to take care of the house. So, it's probably in a bad shape. Plus, owner might be mad, and cause additional damage. I've heard people sell all appliances before foreclosure. You have to be prepared to tackle that in terms of mind/money/effort.
Another thing, it's hard to do an inspection before you buy. But if you pay the owner few bucks, they might let you, if they are still there. If you can access the house, get a licensed home inspector. For beginners, it's more important to know the condition of the house before deciding.
If it's your first house, get the help of a good buyer agent is important.
Find out all you can find about the house, especially current mortgage. This might be public record. With the current principle, + some unpaid interest, late fee, legal fee for foreclosure, this would what the bank wants. You may get it cheaper, or higher depending on the market condition. Your best shot would be if this is the 1st lien foreclosing, and 2nd gets wiped out. This is your profit.
You have to know your financial situation, that you have enough buying power to close the house. So get a pre-approval from a good loan broker. This is important, because the auction is definite. If you can't get financing, you'll lose your earnest money.
2. The process
Best advice is to go to the auction several times before your auction. It'll prepare you on how it goes, even where it is.
Have a clear mind about the value of the house, and have a definite amount of max that you'll pay. Never go over.
The auctioneer is a professional. He has seen all sorts of people, especially beginners. So he'll take advantage of you. So you have to know what you're doing, especially your highest amount.
The process goes quite fast, you can't think at that time. It's either yes, or no.
You need a cashier's check payable to yourself for the earnest money.
3. Closing
After the auction, you have to act fast to get your loan approved. Where I live, the auction has to be ratified, which takes minimum 1 month. After that, you want to close as soon as possible, since the bank charges you high interest (~8%) on the remaining balance of the entire purchase price.
These are what comes to mind. I'd like to see other folks chip in and add comments/suggestions.
Hope this helps.
www.sunskitehomes.com
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