Tips On Buying Foreclosed Homes

Tips On Buying Foreclosed Homes

Ohio’s ratio of foreclosure as of July is 839:1. It means that in every 839 housing unit 1 house receives a foreclosure filing. Despite the increased rate of foreclosure in the whole United States, the ratio in Ohio has decreased by 11.58 percent compared to last month. The state still posted the nation’s fifth-highest foreclosure rate even if there is a year-over-year foreclosure declines in Ohio.

Real estate experts say that buying foreclosed homes provide the opportunity for home buyers to get a house that was all but impossible to purchase in the boom years. It is a great way to acquire a house with lesser price even if it is either for rent or for residence. Buyers can use regular mortgage financing and banks are also often willing to offer foreclosures at a discount. The value of the bought foreclosed home will appreciate as time goes buy and may be sold at a profit.
But buying with lesser price is not that all. Cheap prices does not always mean a good deal. There are factors to be considered when buying a foreclosed property:

1. Check the house. You should see and inspect the house yourself if it really exists. As they say, you can’t buy one that is nonexistent.

2. Check the neighborhood. It is not wise to invest in a place with high crime rates or depressed by large number of foreclosures.

3. Check if how long has it been vacated. The longer time it has been emptied, the higher the possibility of damage to the property. It could be dangerous.

4. Check your budget. Check if you can handle costly repairs.

5. Check your patience. Buying a foreclosed property especially those in financial institutions takes a longer time to process than in traditional home sales. At times the buyer has to do an eviction proceeding and pay legal expenses for the previous owners/tenants to vacate the home.

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