Steve Smith

It goes without saying that one of the biggest advantages to purchasing a foreclosed property is the low price. Second to selling below the market value, banks are usually in a hurry to sell these properties, so there is more flexibility as a purchaser to negotiate all the costs associated with home buying. Third, foreclosures have generally been previously vacated, eliminating the bridge period between purchase and move-in day. But the question remains, is buying a foreclosed home a safe and good investment? Is it the right decision for you? It can be if you keep in mind the following:

• You may need an agent experienced in foreclosures as some sellers will only accept offers if the buyer is represented.
• Search real estate magazines, newspapers and the internet, call lenders for real estate owned properties lists of foreclosures and check government advertising, put out buy agencies such as Fannie Mae, the Departement of Housing and Urban Development for leads.
• Tour any property up for consideration. Inspect it as closely and get as many as your questions answered as possible.
• Check nearby or comparable homes to ensure that the asking price on the foreclosed home is below market value and truly a barging.
• Check your credit and get prequalified for a mortgage.
• Verify that the foreclosed home has no outstanding taxes or other financial obligations and find out who would be liable for these costs. In addition, this information should be able to be obtained for free from the local courthouse of county records, so don't get conned into paying for this information
• Have the home inspected. Be aware that the buyer will have to pay for this in some cases, but it is still worth it!
• Know that there is more paperwork involved in the purchase of a foreclosure, especially when buying through a government agency.

Representing buyers and focusing on finding the right property at the right price for their clients, with a specialty in finding foreclosures, The Smith Realty Group is willing to serve. Assisting both the north shore of Massachusetts and southern New Hampshire customers with their residential and commercial real estate needs, The Smith Realty Group offers this advice because they believe it's a fallacy that you have to go to a public auction or look for a public notice in the paper, when foreclosures are listed through real estate companies as well and we have dealt with many bank and the myriad of  real estate procedures.