Purchasing a foreclosed home can be trickier than buying a home listed on traditional markets for various reasons. But before we delve into these reasons we should first know what exactly a foreclosed home is.
A foreclosed home sometimes referred to as a REO or real estate owned property is a property that was once owned by a consumer but has somehow fallen back into the hands of the mortgage holder. This can happen for a multitude of reasons like none payment of the mortgage over an extended period of time or if the property was voluntarily relinquished in lieu of foreclosure by the homeowner. In plain English it means that the original mortgage lender, usually a bank, becomes the owner of the property and puts it up for sale to recover money owed and this is where you as a perspective buyer come in.
Banks are not in the business of owning things they are in the business of lending money so they tend to look to offload foreclosed properties as soon as possible which means that it is possible for you to get a good home for way cheaper than market value. But before getting yourself committed to purchase Malaysian properties – see StarProperty, there are a few things you should do first.
1) Have the home appraised.
You should know the market value of the home down to the last penny to ensure that you’re not paying too much for a property that could lose potential value in the long run.
2) Have the home inspected.
You should never buy a property sight unseen. You’ll want to know if the home is move in ready or a fixer upper. If it needs significant repair you don’t want to pay over market value then get stuck having to sink in more money trying to make it livable.
3) Secure proper financing.
Make sure that you know what you can afford to avoid having your purchase being foreclosed on you in the future. Financing offered by banks on foreclosed homes vary but most banks offer similar plans to the ones offered on homes purchased through traditional markets.
4) Know foreclosure laws.
Foreclosure laws vary from state to state so you should research the laws that apply to where you are relocating to. For example states that have a lengthy title and county deed transferal process can significantly delay a purchase of a home so be wary if you’re looking to buy in a hurry.
Now that you have been given a foundation to start with buying a foreclosed home should be a piece of cake.