| 1. Your first step is to get pre-approved from your | | | | Inspection to only point out things you didn't already |
| Lender. All REO (real estate owned) bank sellers won't | | | | know from your own unofficial inspection. |
| negotiate your offer unless they see a "pre-approval" | | | | 4. Hire a Realtor with extensive knowledge and sales |
| or commitment letter from your lender first. This first | | | | history with bank foreclosures . Know your legal rights |
| step is critical to your success and additionally to your | | | | to prevent future conflicts (there can be many). Many |
| knowledge of what you can afford. | | | | Realtors are clueless in all the legal Amendments, |
| 2. All bank owned Foreclosures are sold As Is . So if | | | | stipulations and contracts written by the bank's legal |
| you have a home to sell first as a contingency, well, | | | | team (not a standard Purchase and Sales Agreement |
| then you're wasting your time. Your pre-approval letter | | | | they're used to). |
| from the bank will state what you can afford in | | | | 5. After Inspecting the house, estimate your total costs |
| addition to your current liabilities, such as your current | | | | for fixing or updating carefully. Warning: Not all |
| mortgage. Home Inspections are strongly advised, and | | | | Foreclosures are bargains!! Only buy bargains, naturally. |
| even welcomed by the bank, during the accepted | | | | Some foreclosures can be a financial nightmare |
| contract period but don't expect the bank to fix | | | | especially if the costs of repairs are much higher than |
| anything (because 99% of the time they will not). | | | | initially thought or estimated.Know your Home values |
| 3. Check the condition and quality of the house | | | | very well in the neighborhood or subdivision your buying |
| thoroughly before you enter in any negotiations. Most | | | | in (forget about going back 1 year in today's housing |
| "non-productive", with deferred-maintenance, | | | | bubble burst). Make it your goal to save a minimum of |
| foreclosed houses can be available at much lower | | | | 10% off of very similar resale Homes. |
| prices than those in good condition. Expect the Home | | | | |