HERE ARE TIPS TO HELP YOU BUY SMART...When lenders take over a home through foreclosure, they want to sell it as quickly as possible. Since lenders aren’t in the real estate business, they turn to real estate brokers for help marketing their properties. Buying a foreclosed home through the multiple listing service can be a bargain, but it can also be a problem-filled process.
CHOOSE A FORECLOSURE SALES EXPERT...Lenders rarely sell their own foreclosures directly to consumers. They list them with real estate brokers such as Agave Premier Properties. As your Realtor, I can help you find and locate foreclosure properties for all of Santa Cruz County. I am also SFR certified which means I have gone through extensive educational training to help clients navigate these complicated real estate transactons.
BE READY FOR COMPLICATIONS...An attorney can explain our state’s foreclosure process and your risks in purchasing a foreclosed home. It's recommended to set aside as much as $5,000 to cover potential legal fees. As your agent I can recommend a real estate attorney who can guide you and defend any legal challenges to foreclosures you may encounter.
I WILL WORK WITH YOU TO SET A PRICE...As your real estate agent I am able to show you closed sales of comparable homes, which you can use to set your price.You can start with an amount well under market value because the lender may be in a hurry to get rid of the home.
GET YOUR FINANCING IN ORDER...Many mortgage market players, such as Fannie Mae, require buyers to submit financing preapproval letters with a purchase offer. They’ll also reject all contingencies. Since most foreclosed homes are vacant, closings can be quick. Make sure you have the financing and/or CASH you’ll need to close your purchase.
EXPECT AN AS-IS SALE...Most homeowners stopped maintaining their home long before they could no longer make mortgage payments. Be sure to have enough money left after the sale to make at least minor, and sometimes substantive, repairs.
Lenders require that you purchase the home “as is,” which means in its current condition. Depending on the lender some may do minor cosmetic repairs to the homes to make them more marketable, and may even give you an allowance for repair costs to help with you fullfil your lending requirements. To protect yourself from this situation order a home inspection to uncover the true condition of the property, getting a pest inspection, and purchasing a home warranty.
