BUYING A FORECLOSURE IN WICHITA FALLS?
With the number of foreclosed homes on the market, buying a foreclosed home is something many people are considering. As we all know, a foreclosure means that a home owner is unable to pay the mortgage and therefore the bank has taken back the property. The main advantage of buying a foreclosed home is that because a bank wants to recover as much of its investment as quickly as possible, foreclosed homes are often sold for a significant discount with record lows being currently reported of up to 30% the current market value.
Many times the process of finding and acquiring a foreclosed home can be much more complex than the traditional ways of purchasing a home from the personal resident. Because of these complications, it is more important than ever when buying a foreclosed home to work with an experienced agent. Some Banks won't accept offers from unrepresented buyers, and there is more negotiating and more paperwork with a foreclosure than you would deal with in a conventional purchase.
Tour the property and inspect it as closely as possible. Some foreclosures may be in fairly good shape while others may need significant maintenance. Have your agent check comparable homes in the area to see if the listing price for a foreclosed home really is a bargain.
Once you find the foreclosure you like, it is also important to know that any contract on a foreclosed home will require a letter of approval from a lender, some Banks even require that you be approved by their bank as well. This letter must be presented with the initial offer. After the offers have been submitted, many times banks will be slow to respond as it can be a long approval process for every step of the negotiation.
Once the terms of the contract are fully negotiated, the Bank will require the buyer to sign multiple addendums to the offer that protect the bank from the liability of the property. These are nothing to be alarmed about the majority of the time, but definitely need to be reviewed by an attorney.
Have the home inspected by a professional home inspector, your agent can help you with this. Many foreclosures are sold "as is", meaning the sellers will not do any repairs or provide monetary compensation for repairs on the home, but an inspection will uncover any serious problems with the house and allow you to decide whether to move forward with the purchase.
As a whole, the process can be somewhat complex, but definitely worth it with the type of savings that we are currently seeing in the market. If you or someone you know is interested in finding a foreclosure to purchase, let Ashton Gustafson help you find that deal and make the process easy for you.
