About 5 million homes have gone through foreclosure in the half-decade since the housing collapse, but because the rate of foreclosure is falling in many markets, you might not be able to find the deal you once could. But if you’re able to find the right foreclosed home, you can still, most likely, get a better house than you could afford otherwise.
Fallen Rate of Foreclosure
The Mortgage Banker Association reports the percentage of homes in foreclosure at the end of 2013 was the lowest since early 2008. Though there are fewer foreclosed houses available there are some tips that can help you ensure get good value for your money.
Tips for Buying a Foreclosure
- Do not buy a foreclosure if you have not seen it
- Go through a real estate agent if you want to buy a repossessed home
- Understand the cost of repairs required to make the home livable
- Know how much similar homes are selling for
- Be a competitive bidder
- Know how much you can afford by having a preliminary understanding of your financing
- Understand the foreclosure process and the financing restrictions on foreclosures
- Do your buying arrangements and financing together and in advance
Though there are fewer foreclosed homes available, there is some evidence that institutional investors are slowing down in the rate of their purchases. Knowing these tips will help you wade through the foreclosure stream.
For information and guidance on foreclosure, you need the experts at Resnik Hayes Moradi LLP.
Source: Philly.com, 8 smart moves for buying a foreclosure, April 30, 2014