Whether you’re an investor or a first-time home buyer, foreclosed homes are undoubtedly a great opportunity for you to enter the real estate market. With record levels of foreclosures hitting the market in recent years, you’re now flooded with options.

1. What to Consider When Buying Foreclosed Homes
Whether you’re an investor or a first-time home buyer, foreclosed homes are undoubtedly a great
opportunity for you to enter the real estate market. With record levels of foreclosures hitting the
market in recent years, you’re now flooded with options. You may be highly tempted to buy a foreclosed
property that is being offered at an attractive price. But don’t let the striking price tag lure you into a
hasty deal. You need to bear in mind that buying foreclosed homes is not a risk-free bet. While this
shouldn’t deter you from considering these properties, it is important that you do not neglect potential
risks. Here is a checklist that can help you address the dilemma:
Hunt carefully. When you’re looking for foreclosed homes make sure you approach the right companies.
Most often banks hire REO property agents to help them sell foreclosed properties. These agents usually
maintain a good number of foreclosure listings in different areas, which can help you find the best deal.
Make use of free information. Before buying a foreclosed home it is important to research a number of
things including the financial implications, the liens and back taxes owned on the property etc.
Remember that such information is available for free in your courthouse or country records. Similarly,
you can also get free information on foreclosure listings. All you need to do is contact the department of
Housing and Urban Development (HUD) or your City Hall. Do not get tricked by websites which make
you pay for such information.
Examine the property. Always remember that foreclosed homes may not be in the best of conditions.
There may be a range of problems starting from plumbing leaks to cracks in the foundation. This would
mean a major expenditure for you. Another common problem with most foreclosed homes is neglected
maintenance. It has been noted that foreclosed homes sometimes come with roof leaks, failed heating
systems and so on. In such cases, you may be actually inheriting an expensive repair job which you may
not have expected. So it is crucial that you examine the property yourself with the help of a professional
home inspector to make sure there are no surprises.
Work with an experienced professional. Hire an experienced real estate professional who has dealt
with foreclosures before. It is an undeniable fact that foreclosures are a great way to set foot into the
real estate market. It is also true that buying a foreclosed home presents some differences to the
traditional home buying process. So, especially for the uninitiated, make sure you have professional
help.
Taking the right items into consideration, home buyers should be prepared to grab the right REO or
foreclosed home opportunity that comes their way.