In many ways, buying a foreclosure property is no different than buying from a home owner.  The major difference that can exist are:

  1. more paperwork, which shouldn’t be a concern at all
  2. no disclosures, which means that you won’t have the benefit of the previous owner’s experiences with the home.  This is why we will hire a qualified home inspector to look over the property either before we make an offer or during our due diligence (inspection) period.
  3. in most cases, no repairs will be made to the home prior to your taking ownership, although some banks are now completely refurbishing properties such that they are just about in new condition
  4. there may be multiple offers on the property, which means it may actually sell for higher than the listed price
  5. the time lag to close the property may be extended a little just due to the amount of paperwork involved with these types of transactions
  6. you may receive something less than a general warranty deed, which is described in more detail HERE.

There are only a few steps to buying a home.  At each step along the way, you will need various experts to help you, including a real estate agent, a mortgage officer (if financing), a closing attorney, an appraiser and a home inspector, among others.  Here are the basic steps:

  1. Determine how you will pay for the home (cash or financing) and your budget
  2. Scout out the general area you would like to live, taking into account commute times, school systems, etc.
  3. Start searching for a home online
  4. Contact your real estate agent once you’ve determined what kind of home you want to buy
  5. Start looking at properties
  6. Narrow down to the one you want to purchase, or build if that’s the case
  7. Make an offer
  8. If you get the home under contract, start the paperwork for financing and due diligence (inspection)
  9. Once you’ve satisfied the requirement of the mortgage officer, you’ll be given a loan package and clear to close
  10. If the home inspection is satisfactory, or the seller agrees to make repairs, continue towards closing
  11. Set up moving into the new home
  12. Go to closing at the attorney’s or title company’s office
  13. Move in and ENJOY, remember to plan for utilities to be turned on or transferred into your name