GUIDE TO PURCHASING A FORECLOSED HOME

Are you interested in purchasing a home that’s possibly below market value? Well no time is better than the present to purchase a foreclosure. It’s important to know the facts before you invest your money in a foreclosed home, so make sure to contact your Realtor® and do your research.

There’s No Such Thing as Too Much Research
Experts agree that if you’re interested in purchasing a foreclosed home, it’s important to do research on foreclosed homes in the area as well as the foreclosure process. Start by searching public records for a lis pendens, also known as a “lawsuit pending”. This is where you can begin to follow the long foreclosure process. It’s also important to research foreclosure methods and procedures since it varies from state to state. Florida, New York, Ohio and Pennsylvania all require judicial foreclosures--when a lender takes a borrower to court. In other states, the foreclosure process can take place outside the court. Each state is different For information on your specific state, check out United States Foreclosure Laws.

HUD Housing
A Housing and Urban Development (HUD) home is a residence acquired by the U.S. Department of Housing and Urban Development due to a foreclosure on a Federal Housing Administration (FHA) mortgage. Once acquired by HUD, the home is sold in an attempt to recover foreclosure losses. If you’re interested in purchasing a HUD home, check out the National Home Management Solutions (NHMS) for a listing of HUD homes in your state.

Bank-Owned and REO Homes
Bank-owned and real estate-owned (REO) homes come into the possession of a lender—in this case, the bank—during the foreclosure process. An REO home is a type of bank-owned home that has been through an unsuccessful auction. If you’re interested in purchasing a bank-owned or REO home, search for a listing of homes at Bank Owned Properties.

Inspections
If you’re interested in purchasing a HUD or bank-owned home, it’s important to get the home inspected. These homes are sold as they are—with no extra compensation or repairs. Paying for a portion of a foreclosed home in cash is typically a great option; however, there are HUD homes that do qualify for FHA (Federal Housing Administration) loans.

For more information about purchasing a foreclosed home, contact Dana M. Garrett 937-645-6545 or Nanie Ingram 937-645-6542 today!

(From Real Living Blog February 23, 2009)