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How to Buy a Foreclosure Property

Buying a foreclosed home can be an attractive choice for home buyers, since they are usually less expensive than similar homes in the same area that are not in foreclosure.

Just because the prices are better, though, it does not mean that buying a pre-foreclosure or foreclosure home is a piece of cake. Many foreclosure homes for sale are in need of extensive renovation because the previous occupants who could not keep up with the mortgage payments also did not have the money to make necessary repairs. Most of the time previous homeowner are evicted by New York City Marshal, that usually means that your dream home in a convenient location will not be move-in ready.

The need for renovation is not the only factor you need to consider when buying a pre-foreclosure or foreclosure home. Before you buy foreclosures in Queens NY, you need to be good amount of savings. Homes that are in foreclosure tend to get sold very quickly. There is not a long process in which the buyer and the seller negotiate about the price. In the case of foreclosure homes for sale, the bank is the owner. Banks just simply wants someone to repay the debt as soon as posssible, even though there’s tremendous of loss .

Because you are negotiating with a bank and not with a homeowner, it is best to make the highest offer you can afford upfront. The bank will take you at your word that this is how much you are willing to pay and, instead of trying to call your bluff; will simply sell the property to someone who makes a higher initial offer. When trying to decide how much to offer, do some research on how much other buyers in the same area recently paid for comparable foreclosed properties. If your real estate agent specializes in foreclosure homes for sale, he or she can be helpful with this. You can end up with a home that is right for you at a reasonable price, but it takes some work.

Helpful Links:
Every Friday Start:10am
Queens Real Estate Auction
Supreme Court
88-11 Sutphin Blvd
Jamaica, NY 11435

3 Responses to How to Buy a Foreclosure Property

  1. farrukh /

    September 5, 2015 at 4:59 pm

    It’s a very good article.

  2. andrearobinson /

    September 7, 2015 at 4:56 pm

    This is great info to have! First of all, you’re right – you need to know what all has to be renovated before you can make an educated decision about wanting to buy it. Do they allow tours of homes like this, or do you have to bid sight unseen?

    The other great point was to bid as high as you can because other buyers might be trying to scoop it up! I never would have thought of this, because in the real estate market at large, it’s the other way around. You have to bid as low as reasonable, to see if you can get the seller to come down.

    Thanks for a great article.

    :)

  3. SissyMacDougall /

    September 8, 2015 at 4:08 am

    Now this is a really good article. I do appreciate the warning because that’s exactly what I would like to do – find a home priced under market value.

    I had no idea you could check on the price of other foreclosed homes in the area! That is an eye opener, and definitely good to know.

    As far as the repairs, if I look at the house and get that big of a discount, I can use part of what I was planning to spend to bring it up to code and get it ready for a tenant.

    Anyway, I’ve got lots to think about – thanks for bringing up these various issues.

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