Don’t Buy Housing Foreclosures Until You Read This
With the rising foreclosure rate it’s a buyer’s market at the moment where you can buy housing foreclosures for pennies on the dollar. But before you rush in to buy that bargain property, arm yourself with these two must-know details to ensure a simple and successful foreclosure purchase.
Be aware of the state foreclosure laws.
Foreclosure law differs from state to state so before you start searching for those bargain housing foreclosures make sure you have studied the laws that pertain to the state you are buying in. For example it is wise to be aware of the property owner’s “right of redemption”.
Right of redemption gives the property owner the right to buy back the foreclosure after it is sold at auction. The time limit for this can vary with some states like Texas not allowing the homeowner any right of redemption, whereas other states have different time periods it is in effect for. It could end at the time of the foreclosure sale as it does in Florida or it can be in effect for up to 12 months after the sale, as is the case in California.
Be aware that when housing foreclosures go to public auction they are sold “as is”.
Housing foreclosures sold at public auction are sold sight unseen. You are not able to get a house inspection done on the property before the public foreclosure auction, though occasionally you can inspect it just prior to the auction. Even though you won’t be able to tell the condition of the inside of the property, it’s a smart move to drive past the property and look at the outside condition of it. You could also approach the occupants and ask them if they would mind you looking at the inside of it, but they are under no obligation to agree to this
Being aware of the above points is a good start in your foreclosure buying education, However there is a program we recommend that covers everything you need to know about buying housing foreclosures. To find out more about it go here: www.foreclosuresrealestate.org/go/foreclosures.
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