buying foreclosed properties

Foreclosed homes are real estate properties whose owner failed to make the mortgage payments. It happens when the titular owner fails to provide payments for the loan amortization to a lender. It also occurs when the mortgage borrower also fails to pay the real property tax mandated by the government. These are also called Acquired Assets.
Consequently, the lender. usually the banks or government, will acquire the borrower’s property as collateral. It gives the lender all the rights to own or place it on sale to cover the financial loss.

Disadvantages of Acquiring Foreclosed Properties

On the other hand, buying foreclosed properties has its disadvantages. These are:

1. Owning the property in its current state
Acquired assets are usually sold on “as is, where is” basis. It means you will buy the properties including all of its problems. Examples are damaged units or house parts and outlaws or illegal occupants on its vacant lot.

2. Titles may come with existing liabilities
Foreclosed homes may come with conflicts such as being occupied by informal settlers, existing lease, or strong refusal of the previous owner to vacate.

3. Ownership entails patience
Since buying such properties is on “as is, where is” basis, you need to take careful steps in making a decision. You need to seek professional help in determining the value of the property and how much will it cost to deal with the damages.

Moreover, you may find some advantages if you intend to buy one

Advantages of Buying Foreclosed Properties:

1. Low price
Foreclosed properties are considered distressed assets, so owners usually dispose of these properties as immediately as possible. These are sold at a lower price than the average market value or attached with discounts for interested buyers.

2. Legitimate purchasing process
Since you can acquire these assets from the government or banks, the transaction is clean. Also, banks have transparency and accountability regarding the condition and legal documents of the property.

3. Quick transfer of titles
In foreclosures, the property titles are transferred to the lender immediately, if it has no pending court cases. That means the bank (or government) takes the ownership and the inherent liabilities as soon as the property is acquired.

4. Updated taxes and utilities
If the properties are under a bank, it is guaranteed that the bank pays real estate taxes, monthly dues, and other related expenses.

5. Sell off the acquired asset at a higher price
Whether you are a home buyer or property investor, these foreclosed properties can be transformed into a home through repairs, upgrades, and renovation. This way, it increases the value of the property, which can be sold in the market at a higher price.

A foreclosure is a home that’s under the control of a bank. People foreclose on their homes when they can no longer make their payments. In most cases, foreclosed homes are much cheaper than other homes in the area, and you can sometimes find a good deal. However, these homes also often have severe damage and structural issues and are usually sold as-is.

Get in contact with an experienced real estate agent if you want to take a risk on a foreclosure. Your real estate agent will help guide you through the foreclosure process because most banks don’t sell to individual buyers. Get an appraisal and inspection once you find a home you’re interested in. You’ll also need to secure funding with a mortgage preapproval. Follow up with your lender and agent to finalize the sale once the results of your inspection look acceptable.

To know more about buying foreclosed properties, or just about any other related information, you may call us @ 216-619-4387 visit CPD Homes LLC, we’ll be more than happy to assist!

Top 10 ‘FAST Home Selling’ Secrets You Should Know!

Before you get into the world of real estate property selling, you must read this fast home selling secrets every...
Read More

25 Best Things To Do When In Cleveland

Lover of art museums and culture?  Cleveland has you covered at the Cleveland Museum of Art. More interested in the...
Read More

5 Ways Moving To Cleveland Could Improve Your Life

Cleveland is a diverse community, a true melting pot nestled on the shores of Lake Erie. You don’t have to...
Read More

Reasons Why Dealing With An Investor Is The Best Option To Sell Your Home Fast!

Selling a house is not always that easy, especially if it is your first time. The traditional route of selling...
Read More

Moving Home For A Better Millennial Life? These Seven (7) Reasons Will Make Your Move To Cleveland!

Are you a Millennial looking for a place to settle down?  Look no further than moving to Cleveland!   Cleveland, Ohio...
Read More

Top 4 Benefits of Turnkey Real Estate Investing

Many savvy entrepreneurs believe that the best way to earn significant profits over time is by investing in real estate. ...
Read More

A Quick Look at Cleveland’s Real Estate Stats & Trends Amid 2021 Pandemic

Cleveland is ranked as one of the top housing markets to watch in 2021 by Forbes. The affordability of single-family...
Read More

Tricks & Tips on House Flipping for Fast Home Selling!

Basically, the term "house flipping" is used by real estate investors to describe the process of buying, rehabbing, and selling...
Read More

Top 6 Passive Income Sources from Real Estate Investment

Passive Income is a form of income received on a regular basis with minimal effort on the investors part. Being...
Read More

Looking For The Best Real Estate Agent To Sell Your Home – FAST? Check Out These Guidelines!

Finding a realtor and choosing the right agent to sell your home fast is not as simple as you may...
Read More

Follow by Email
Visit Us
Follow Me

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.