Are you eyeing to purchase a foreclosed property? Then you should learn how to get in touch with the possible owner of your future home.
Homeowner. Pre-closure is the initial stage in the foreclosure process wherein the homeowner still remains the contact person for the property. This happens when a Notice of Default (non-judicial states) or Lis Pendens (judicial states) has been filed against the homeowner because of missed mortgage payments. Once the lender records the document, the information becomes a public record, which makes it easier for you to know the homeowner’s contact details.
There are three widely used methods to contact the owners of pre-foreclosed properties. Mailing is considered the best way to start communicating with them. Once the homeowner contacts you through mail, the initial communication becomes easier and they likely won’t have their defenses up.
Another method is through telephone, which will require cross-referencing to get the phone numbers. Just be sure to be professional and courteous. Never be demanding or pushy, as the homeowner might not respond well to this. Remember, never interview the owner through phone; simply asked them if you can talk about the details in the property as this is more professional and productive.
Door knocking is the third method, which is considered an extremely time-intensive option that increases your expenses significantly. Such communication option is practical if the property is just nearby your current residence.
Auction. If you’re interested in a foreclosed property that is set for auction, then you should get pre-approved for a home loan before the foreclosure auction. Once you get pre-approval, check multiple foreclosure listings so you can compare prices for similar foreclosed properties in the area. You can also check your local newspaper’s classified sections under the “Real Estate” and the “Auction” listings. You can as well check with your local realty offices to know if they have listings for area houses up for auction.
Once done, get in touch with auctioneers in your area who specialize in real estate auctions. Otherwise, you contact your auctioneer’s offices to know if they hold house auctions.
REO. If nobody bids at the public action for a foreclosed property and the bank repossesses the property, then the foreclosed property can now be purchased from the bank or the lending institution. Anyone can buy a bank-owned REO.
There are several ways to find bank-owned properties:
- Multiple Listing Service (MLS). Lenders commonly list their REO properties in MLS so you simply ask your real estate agent to help you determine REO offers in your area.
- Bank websites. Most banks have allotted a page on the website dedicated for their listings.
- Online specialists. Zillow is an example of an online specialist, which is actually free. Finding properties on Zillow is easy thanks to their search filters. Other online foreclosure listing services charge a fee.
Once you have chosen a property, inspect it since most of these are “distressed” homes. Furthermore, they are as well sold “as is,” which means repairs or renovations will sometimes be necessary. Then do a title search where you check public records for liens and outstanding taxes on the property. Negotiate, make the offer then pay up for the property. Sometimes, if the homebuyer has good credit, banks will loan the full price of the foreclosure or even more.
If you need further guidance on buying foreclosed properties, please contact Showcase Realty. We have the right people to help make the transaction a lot easier and smoother for you.
Like What You've Read?
If so, please join our newsletter and receive exclusive weekly home buying tips, financing guides and Charlotte, NC real estate news. Enter your email and click Send Me Free Updates