My father, Stan Collins, had the best comment when asked about foreclosure: “I don’t want one.” That’s the way most people feel about them, but they do create a healthy buyers’ market. If you’re headed down to the courthouse steps to pick up a deal on a piece of real estate, here’s a few notes to take with your hat and coat.
Don’t forget your wallet. Have your cash handy to produce 5% of your bid amount upon sale; you have to pay the rest of it within two hours. My father recommends that you save your money and take a whole bunch of it with you.
Purchase of a foreclosure property is not without risk; however, you can minimize that risk by doing some homework. Have a reputable realtor assess the value of the property. This will underscore exactly how much of a deal you’re getting and help you set your bid price. AND do a title search. Make sure everyone’s on the note who has an interest in the property. You don’t want to buy a bargain beachfront only to realize it’s a SECOND mortgage and your view is blocked by $400,000 of the first mortgage.
Nobody wants a foreclosure… unless you’re on the buying side.
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