Ever wondered how to purchase a home in foreclosure?
Foreclosures are not as common as they once were, but of course, life happens and sometimes homeowners have to default on their home loans.
What does this mean for you as a buyer in the Atlanta area? Here’s the nitty gritty!
Let’s say you you find a home in your dream neighborhood, like City of Decatur, but it’s a foreclosure. Now what?
The first step to buying ANY home is getting pre-approved for a loan or having a proof of funds if you are purchasing in cash. If you haven’t already, let’s start here.
Then, link up with an agent who understands foreclosures and Atlanta neighborhoods. Heads up - that’s me!
My clients are usually surprised that the foreclosure offer process if very similar to working with a typical seller. But, with foreclosures, the seller is a bank. Making a competitive offer here is key, as you will still be competing with other buyers and the bank is looking at cold, hard numbers. There is nothing personal about these negotiations.
Once you go under contract, expect difficulties in the due diligence period. Since most foreclosures are sold “AS IS,” be prepared for surprises after you go under contract. Know your deal breakers ahead of time and be smart about what repairs you can take on. Having a good inspector here is key. You won’t have a full picture about the property prior to making an offer, so you’ll want an inspector that is very thorough (I can make recommendations for some fantastic options!).
Consider a renovation loan like a 203(k). If you're buying a fixer-upper, this type of loan can help you finance any repair costs.
“People are usually surprised that the offer process if very similar to working with a typical seller. But, with foreclosures, the seller is a bank. ”
If you time it just right and you’re willing to put in the effort, a foreclosed home can be a sweet deal! Grab a spot on my calendar today, and let me find your next home at a price you’ll love.
