Real estate investors or new home buyers have already realized that now is the best time to purchase homes. There are so many foreclosed homes in stock and all one has to do is to view them and then apply for a home loan.
But before you get super excited about the whole deal, you should also make sure that the properties pass a certain criteria or else you would be just making a bad investments without even realizing it.
Foreclosed Properties Make Good Investments But Make Sure They Pass the Criteria
Find out is the previous homeowner had not been able to pay a limit of three monthly amortizations before it was foreclosed. Also find out if the lenders were the ones to file for the foreclosure. These should be filed in the County Record and the previous homeowner had been issued a Notice of Default.
Second, find out is the previous homeowner has little or no equity in the property. Find out also if the remaining balance on the mortgage due is equal to or more than the value.
You have to be certain that these criteria are reached before you make moves to purchase the home. If the mortgage, for example, is still higher than the value of the home, then that would be considered as too expensive a purchase. If it is way below the balance, then that would be a good buy.
If there is no Notice of Default, then the next buyer, you, would be caught in the middle of a legal battle.
Also, make sure that the property is still viable. There are some homeowners who, in their anger and frustration at the foreclosure, would vandalize the home and render it totally irreparable. So it is best to view the property very well with someone who can assess its condition for you. If all are satisfactory, then you can make a bid to apply for the purchase of the home.