tips on buying a foreclosed home

Are you considering buying a foreclosed home? Buying a foreclosure can be a great way to score a bargain while househunting. What exactly is a foreclosed home, you ask? These are homes in which the owners default on their mortgage payments and were unsuccessful in selling their home.

House auctions offer foreclosed homes up at a reduced price, saving you big on your new piece of real estate. But before you consider buying a foreclosed home at a house auction, be aware of five.

Buying a foreclosed home is a little different. "Buying a foreclosure is definitely a bit of a grind. It’s not easy," says Robert Jensen, broker and president of the Rob Jensen Co. in Las Vegas.

For those who go through foreclosure. FTC and HUD recommend the Home ownership preservation society, which is nonprofit. Another scam includes selling your home to someone who offers to let you.

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Buying a Foreclosed Home at an Auction is Smart. No matter what your financial situation, buying a home in foreclosure is a way to start building wealth. Buying a foreclosed home at an auction offers you the opportunity to get your first house or start revitalizing a community.

But the process of buying a foreclosed home can differ a little from traditional home sales. Here are some things to consider before you make an offer on one of these properties. The "As-Is" Sale

Buying a foreclosed home is typically cheaper than buying a regular home. It is also easier to search, narrow down and buy a foreclosed home. The following are Tips For Buying a Foreclosed Home

lowest credit score to get a home loan Low 3% down payments on a fixed-rate mortgage; flexible income guidelines; potential closing cost credit for completing an approved homebuyer education course, with an eligible down payment; Keep in mind that mortgage insurance is required and will increase the cost of the loan and monthly payment.

Buying a foreclosed home is not like the typical home purchase. In many cases: Only one real estate agent is involved. The seller wants a preapproval letter from a lender before accepting an offer. There is little, if any, room for negotiation. The home is sold as-is, and it’s up.

Despite increases in home prices and a stabilizing housing market, many experts say the foreclosure crisis is far from over. But buying a foreclosed home is different from buying a typical resale.