So You Want to Buy a Foreclosure?

Thinking of buying a foreclosure? These homes can be found at bargain prices but don't come without their share of risks. Learn if distressed properties could be for you.

Helpful Tips for Those Considering Buying Foreclosed Homes

• Seek professional help.Novice foreclosure buyers need an experienced pro to assist in all facets that go along with this type of purchase. A real estate expert can walk buyers through everything involved with this process, giving them advice that can ultimately lead to a successful transaction. Going this route alone while trying to learn along the way can provide buyers with some very costly lessons.
 
• Learn about the process. Foreclosures are a totally different animal than regular homes for sale. A knowledgeable agent can explain how to go about buying a distressed property. Additionally, your real estate professional can explain the difference between bank-owned foreclosures, preforeclosures and foreclosure auctions as well as which makes the best sense for you and why.
 
• Look at available properties. Begin your search by scoping out homes that meet your criteria. Some real estate search engines provide an option specifically for choosing foreclosed properties. If any of these houses catch your eye, your agent can set up a tour.
 
• Know the risks. These properties may be in disrepair, and require buyers to do their own inspections to ensure renovations won't go over budget. Getting a clear title can be another problem. There may be liens on a home or there could be a dispute involving the settlement of an estate; all kinds of issues could arise here. Again, your real estate agent can troubleshoot any of these possibilities.

While purchasing distressed properties isn't for everyone, this avenue can lead to the right home for some. A foreclosure can provide a substantial savings to buyers who take the time and effort to ensure things go well.