Saturday, 28 December 2013

Realtors and Real Estate in Lake Mary, FL - How to Buy a Foreclosure

Are you in search of realtors and real estate in Lake Mary? Looking to learn how to buy a foreclosure? Foreclosure is a long complicated legal process, which starts when a property owner defaults on their properties mortgage. The reasons a home may be in foreclosure are varied but usually come down to the current homeowner inability to pay their mortgage payments.

Usually homes that are foreclosed on have not been maintained to the same level when compared to someone who is outright selling their home. This could mean anything from the roof needs repair, the foundation is damaged, or the outside landscaping has been neglected for months or years to simple matters like the need for a new carpet or hot water heater. Keep in mind that the amount of repairs and the severity of those repairs will be reflected in the asking price of any foreclosed home available for purchase. If the home you are interested in is priced well below market value and appears to be an irresistible bargain, look closely; the savings may be a sign of major work that needs to be completed.

Purchasing a home that is currently being foreclosed upon can net a buyer a great savings. When the mortgage lender finds it necessary to foreclose on a property, a notice of default is filed as a public record. These public records are then compiled by companies and real estate agents that assist homebuyers in finding foreclosure properties to purchase for a fee. You can also save some money by searching the records yourself, however that can be very time consuming.

Once you have found a property you are interested in purchasing it is a good idea to have a title search and lien search completed on the property. This will help you avoid any surprises about the ownership of the property. Usually homes that are being foreclosed on for lack of payments on a mortgage also have unpaid taxes or utility bill liens against them. You will also want to have a complete home inspection performed by a neutral third party as well as home valuation completed. Make sure you enter into your purchase contract with open eyes and all the knowledge you can gain.

If you are a first time home buyer looking for a great deal, ask your real estate agent about bank owned foreclosures. Banks understand the legal process of foreclosures better than independent mortgage brokers and under normal situations will not sell the home until the current owner or tenants have been evicted. Save yourself the trouble of having to deal with an unhappy homeowner who has just lost their house to you by focusing on properties where the owners are no longer living there.

Many banks and other financial institutions have a surplus of foreclosed homes available for purchase. These organizations need to sell the homes in order to recoup their expenses so the price on a new home may be right for you. Be careful though, do not purchase more home than you really can afford, you would not want to have to go through the process of foreclosure yourself.

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