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Home » Blog » Investing » Buying Foreclosed Property

Buying Foreclosed Property

Whether you’re a first-time homebuyer or business owner, it’s possible to purchase property at an affordable price with foreclosed properties. Banks generally offer foreclosed properties at low prices because it takes a lot of money and time to maintain these properties and they would rather sell them to buyers for profit. Before you purchase a foreclosed property, you should study the market prices of homes in your neighborhood to ensure you’re getting the best deal on the property. Another thing you should do is have an inspector view the property so you’ll know what repairs need to made and if you have the budget and time to make these repairs and pay for the home. Determine your yearly income and decide on how much you’re willing to pay on a foreclosed property.

If you’re wondering how you can locate listings on foreclosed properties, one good place to visit is the website of your local sheriff’s office. Throughout the year they hold auctions of foreclosed properties and the website will give you pictures and details of the properties that will be sold at the auction. Another way to find foreclosed properties is to meet with your realtor because more realtors are featuring listings of foreclosed properties on their websites. You can locate foreclosed properties on the Department of Housing’s website www.hud.gov and many of these properties are sold at affordable prices. The office of Veterans Affairs’ website also has foreclosed properties that were owned by former veterans who purchased their properties with VA loans.

To fund your foreclosed property, you should meet with a lender to see if you’re pre-approved for a loan. The lender will review your income and credit history and if you’re approved, you’ll get a letter stating how you can afford on a property. If you’re rejected by different lenders, ask a relative if he would be willing to lend you some of the money for the property. If he agrees to do this, you need to have a written contract stating the amount of money you’re borrowing and when you will pay back the loan. Another way to fund the foreclosed property is to sell some of your assets and use your savings to buy the property.

A foreclosed property is a good way to generate income depending on what type of property you’re buying. For example, if you’re purchasing a foreclosed condo, you can rent out a few rooms to tenants and turn those rooms into executive suites for business executives who work in the downtown area. Or if you own a double-sided home, you can rent one side out to some relatives or friends who need a place to stay. If you own a foreclosed commercial property, you can lease it to a new business owner. This helps you pay for the mortgage, utilities and your other daily expenses.

2015-10-23T02:31:11+00:00 By |Categories: Investing|Comments Off on Buying Foreclosed Property