When you’re in the market for a new home, a traditional purchase may not always be the best option. Foreclosed home sales often present unique opportunities for home buyers and flippers, but they may also have some risks.
If you’re considering a non-traditional purchase, we can help you familiarize yourself with the pros and cons of buying a foreclosed home so you can make the best decision for your future.
Foreclosed homes are often sold in the following stages: pre-foreclosure, auction, or post-foreclosure. Each stage alters the buying process and comes with distinct benefits and challenges.
Pre-foreclosure is the first step in the foreclosure process. This stage occurs when the homeowner misses multiple mortgage payments, and the lender issues a notice of default. During this stage, the homeowner has options to avoid foreclosure, including selling the home at a lower price to make a short sale.
If the homeowner cannot avoid foreclosure, the lender is allowed to sell the home in an auction to recoup what is owed. This stage enables potential buyers to purchase a home at a lower price while avoiding long negotiation periods.
When a home does not sell at auction, it becomes a bank-owned property and can be sold in the general real estate market. This stage allows potential buyers to view the home and obtain routine inspections before making a purchase.
Like traditional home sales, buying a foreclosed property has pros and cons. Each foreclosed home will be different, and you will likely encounter an array of situations. However, with the proper preparation, you will know what to expect and how to respond.
The good news about the cons of buying a foreclosed home is that they are often circumstantial. For buyers that have cash on hand, making cash-only offers will not be an issue. Similarly, having access to sufficient funds makes paying additional fees or making necessary repairs more straightforward.
Now that you know the major pros and cons of buying a foreclosed home, it’s time to begin your search! While countless real estate sites are used for browsing traditional home sales, you’ll need to search in several places to find foreclosed properties.
These are the best sites to search for forecloses:
If your home is facing foreclosure, you do not have to navigate the process alone. Our team of experts can help you understand the details while presenting you with the best alternatives. Renewed Homes specializes in creating valuable solutions that avoid foreclosure, save your credit, and help you move out quickly.
Want to learn more? Contact our team today and start preparing for a better financial future.
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