There are more affordable homes in more areas than ever due to the many foreclosures. 

What is a foreclosure? There are two types: (1)BANK OWNED or REO's and (2) PRE FORECLOSURES or (short sales, when sellers lenders sells house for less than what is owed to keep home from going into foreclosure).

FORECLOSURES are good deals but there are trade-offs in going after foreclosed properties.  Be prepared to be patient and flexible.

1. DO YOUR HOMEWORK

•          Know Area and be familiar with foreclosure laws of each city and village.

 2. FORECLOSURES are not always easy to inspect!

•          They may be occupied (short sales) or utilities may  be shut off.

3.  WHERE TO FIND THEM? 

•  Lists are available thru real estate websites, agents etc.  Beware of offers on the Internet,TV, and radio that charge fees for such lists.  

4.  BE REALISTIC:  

• Bargins are out there but lenders are not giving away homes. It's likely banks have already lost money on loans and will try to recover with as high a price as possible.Most have reduced the prices 10-20% below market value. The longer the house is on the market the more the bank will reduce the price. Deepest discounts will be in neighborhoods with a lot of foreclosures.

5. FIND A FORECLOSURE SPECIALIST LIKE ME! 

• Real estate agents with foreclosure experience like myself have lots of information.

6. INSIST ON A PROFESSIONAL INSPECTION.  

• Previous owners with serious financial problems usually have not maintained the home. Occasionally resentful owners will trash the place when being forced to leave.  FORECLOSURES ARE SOLD 'AS IS". You may need funds to make repairs.  There are repair loans available thru FHA.

7.BE  PRE-APPROVED FOR A MORTGAGE. 

• Don't risk losing out on a good foreclosure because you don't have a lender standing by with mortgage money.  Banks may want a higher down payments and proof of borrowers ability to make payments.

8.  BE PATIENT: 

• It can take up to 2 weeks to hear from a bank once an offer has been submitted, and during that time there may be multiple offers if it is a good deal.  Banks may call for the highest and best offer before making a decision.

9.  SHORT SALES:

• Require even  more patience. It can take up to 4-6 weeks before the lender will accept your offer because they are taking a "hit" on the loan and must get it approved thru a committee. YOU CANNOT BE IN A HURRY TO BUY TO DO A SHORT SALE!  Although these are some of the best deals, lenders must do several appraisals before approving.

THERE ARE GOOD DEALS OUT THERE !  CALL ME Barbara Dziurayour Real Estate Professional!