Sales prices for foreclosure homes in Orlando, Florida and across the United States are generally lower than those for non-distressed homes. These low listing prices can, understandably, seem like a lovely deal. However, it’s important to make an informed decision.
Read on for what you should be aware of when it comes to foreclosures:
Buy through a Bank
The key benefit to buying your foreclosed property this way is that residual back taxes are the bank’s responsibility, not yours. Additionally, you can inspect the home to see if you can afford the repairs needed.
Don’t Go Into Any Auctions
It may seem like common sense to just bid at an auction, but experts actually advise the opposite. There are several risks that come with properties found there, including not getting access to crucial information like tax records and not being able to inspect the home.
Foreclosures Are Usually Sold ”As-Is”
Remember that the list price is just the tip of the iceberg. Make sure your budget has room for more than just purchasing the home. Chances are, there will be maintenance and repair work that will cost quite a bit. Even investing your time in home improvement can add up. Several foreclosed properties tend to end up in a state that’s not ideal, so be sure you have enough wiggle room for any repair jobs.
Many People Will Be Vying for These Foreclosed Homes
Given the price range of bank foreclosed homes in Orlando, many people want to take advantage of great deals. Regional and local banks, in particular, are keen on selling foreclosures to buyers, fast. Get ahead of the curve by skipping the real estate agent and directly approaching the lender. If you find a home that’s not listed yet, go ahead and make inquiries.
The Process Will Be Quite Involved
Keep in mind that your bid being approved relies on several factors:
- Other lien holders
- Present homeowners
- Primary lender
Patience is the key to your newly acquired property. Having your offer accepted above all others is only the beginning. Since the sale is not the usual owner-to-buyer, the actual process involves quite a bit of red tape. Expect the process to be not that straightforward, especially if you’ve bought a home from a seller before.
Conclusion
When buying a foreclosed property, it’s vital to make an informed decision. That doesn’t just mean taking into account what people with both successful and failed endeavors say. Buy through a bank, remember foreclosures are sold “as-is,” and take note that the process will be quite involved. So, be patient and have enough funds to cover home improvement jobs if you do decide to go with foreclosed properties.
On the market for Orlando foreclosed homes for sale? We’re experts in providing top-notch investment property advice and wealth management, so we’d love to help you. Reach out to Orlando REO Professionals today!