If you’re on the hunt for a new home, buying a home in foreclosure can mean getting a great bargain. However, as the process requires some additional expertise and professional assistance, you’re going to need a team of experts and a few pointers to help the process along. Once you are settled in your new home, ensure you secure your largest asset with a custom-tailored NJ Home Insurance policy.
Choose a foreclosure sale expert.
Most often, lenders don’t sell their foreclosures directly to the public, instead they enlist the help of a real estate agent. According to House Logic, you can work with a real estate agent who sells foreclosed homes for lenders, or have a buyer’s agent find foreclosure properties for you. To locate a foreclosure sales specialist, call local brokers and ask if they are the listing agent for any banks. Either way, ask the real estate professional which lenders’ homes they’ve sold, how many buyers they’ve represented in a foreclosed property purchase, how many of those sales they closed last year, and who they legally represent.
Prepare for complications.
Depending on where you live, various state laws allow previous owners of a foreclosed home to fight for it in court, even if you have closed on the home already. If this is the case, be prepared with an experienced real estate agent who has defended clients from the challenges of foreclosures.
Get financing together.
Many lenders require a financing preapproval letter be submitted with a purchase offer. Because these homes are often vacant, buying a foreclosure can close quickly. Be sure you have the cash on hand to finalize the deal and don’t submit contingencies as you run the risk of being rejected.
Prepare for an as-is sale.
It’s likely that the previous owners stopped taking good care of the home way before they stopped paying the mortgage. Prepare to make minor and significant fixes once your purchase has been finalized.
About Tri-State Insurance Agency
At Tri-State Insurance Agency, we are committed to protecting homeowners against the broad spectrum of perils they face. Whether it is your full-time residence or vacation spot, our high-value homeowner’s insurance is custom written to meet your specific needs and offers higher coverage limits and inclusions that traditional policies. For more information, contact us today at (888) 990-0526.