Buying a Foreclosed Home: How it Works

Published On: December 8, 2017|Categories: Home Buying|Tags: Foreclosures|

If you’re like many people, you’ve considered buying a foreclosure – but what is the process really about?

Buying a Foreclosure

First things first: If you’re buying a foreclosure, you’re going to want to work with an experienced Charlotte Realtor®. These types of transactions can be very complicated, and for most people, it pays to have a seasoned pro there to answer questions and give advice.

What You Need to Know Before You Buy a Foreclosure

The seller is a lender, not another person
The seller will want a preapproval from your lender before accepting your offer
You probably won’t be able to negotiate much (or at all)
The home will be sold as-is – and that means you’ll have to pay for repairs and improvements
The home will probably be vacant, so you can move in faster once you buy

Preapproval

The seller is going to want a preapproval letter from your lender to prove that you really have the means to buy the house. Otherwise, you could be wasting the lender’s time (and remember, the lender wants to unload the property quickly, because what’s a bank going to do with a house?).

Negotiation

The lender is likely losing money every day the house sits on the market, and if you’re not going to buy it, someone else probably will. There probably won’t be much room for negotiation because the lender is already losing money.

As-Is Sale

The lender isn’t likely to make any repairs to the home in order to sell it. Remember, you’re dealing with a business entity, not a person – and in this case, the goal is to minimize losses. However, a lender has more time to spare than a person facing foreclosure does; typically, lenders can afford to let a home sit on the market until the right buyer comes along.

Are You Buying a Home in Charlotte?

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