| If you are on a tight budget and you just can't | | | | your repo home purchase. Don't forget to take in |
| afford a new house, then repossessed homes | | | | the costs needed for repairs. Inform your |
| can be of great value. This is because such | | | | foreclosure agent of the figure and give him the |
| properties are usually sold for just a fraction of | | | | letter that's approving your pre-qualification. |
| the real market prices. You can't just save, but | | | | 4. Together with your agent, know if it is possible |
| you can also build wealth in this progressively | | | | to not pay in cash at a public auction. When |
| popular market. | | | | possible, ask the assistance of your agent on how |
| Foreclosure or repo homes offer a good | | | | you can find foreclosure auctions. |
| opportunity to invest on real estate since the | | | | 5. With the information that you have gathered, |
| lender wants to get ride of the houses at once, | | | | start to visit foreclosure homes and see what is |
| and will typically offer them at prices that are | | | | available. Make a list of prospective properties and |
| definitely lower than their actual market value. | | | | let your agent compute the total cost plus the |
| However, there are times when the previous | | | | preliminary payment and the costs that you need |
| homeowners do not take good care of these | | | | to renovate the homes. It would be better if you |
| seized properties, or they just don't have the | | | | ask you agent to calculate the home's resale |
| means to maintain them. These properties may | | | | value for the years to come. |
| have been abandoned for a long period of time so | | | | 6. If you intend to lease your purchased repo |
| some repairs have to be done. To determine if | | | | house, be sure to conduct a market research and |
| you are really receiving a good deal, add up first | | | | estimate what the monthly rate would be. |
| the price of the repo home you intend to buy to | | | | 7. After all the computations and researches |
| the cost of possible repairs. | | | | you've done, place a good bid on the repo house |
| Here are some steps that should be done before | | | | that you think is of the best value. |
| buying a foreclosure or repo homes: | | | | 8. Once you win the foreclosure house that you |
| 1. Consult a loan agent in your place to determine | | | | want, have it appraised and inspected |
| if you are pre-qualified for your desired loan. | | | | professionally. |
| 2. If you're pre-qualified, then look for a realtor | | | | 9. Hire a title company to investigate the history |
| specializing in foreclosures. Try also to search for | | | | of the house. |
| listings that are advertised in magazines, local | | | | 10. If the foreclosure house seemed satisfactory, |
| newspapers and in the internet to the particular | | | | you can now live in there or start to fix it up. |
| place where you want to purchase foreclosure | | | | It is advantageous to purchase a foreclosure or |
| home. If you are among those people who are | | | | repo home because they can now locate it easily |
| interested in buying government properties, then | | | | through the Internet and you will be able to know |
| look for a certified agent to transact with HUD, | | | | right away the important information such as the |
| VA homes and FHA. | | | | loan balance, the crime rate in the area, the |
| 3. Determine how much you want to spend on | | | | schools as well as the home's market value. |