South Windsor Foreclosures. If you have been looking to buy a home, no doubt the thought of buying a foreclosure has crossed your mind. Saving money when you buy a home creates lots of interest in foreclosures in South Windsor or any area.
South Windsor Foreclosures can be great opportunities, but when buying a foreclosure there are some tips that can make the purchase go more smoothly. The article below is a great start on tips when buying a foreclosure.
Foreclosures often need "work". They might just be messy or dirty but if that is the only work they need they will be an exception. More often than not they need more major work. Roofs, heating systems, electrical upgrades, serious cosmetic work like kitchens or bathrooms as well are more the norm. South Windsor Foreclosures are no different, they often need work to be lived in. If the foreclosure needs work you will need a renovation loan, check out this post on FHA 203k Rehab Loans. If you have questions about buying a foreclosure in South Windsor, give me a call 860-306-8029. South Windsor Foreclosures.
With the market what it is today , foreclosures and REO properties are the talk of the town. I talk with several buyers through the week that are interested in buying a foreclosure in the Hickory, NC area because they've heard it's the best way to "get a deal." That may be true, but before you think about looking at foreclosures, here's some tips to help you decide if a foreclosure is really the way you need to go.
First, let's define what we mean by 'foreclosure' and REO properties. The term 'foreclosure' is used in a lot of different situations, but here we're referring to when the bank as actually taken possession of the property, become the owner, and has listed it for sale. "REO" stands for Real Estate Owned Property; a term that banks use once they have foreclosed and become the owners.
Okay, on we go!
- Get qualified for a loan before you begin your search. This is PRIMARY. And I mean fully qualified. REO's generally want a fast sale and they expect to have a good prequal letter or proof of funds (if you're paying cash). At least in the Hickory, NC area (and I'd presume elsewhere as well), you don't have a financing contingency on foreclosure properties. Get Pre-Qualifed Now
- Understand that REO's will usually need work. Sometimes lot's of work! I say this because I've shown buyers that said that they don't mind some TLC, but then balk at the smallest problems. If you're not handy, or don't have a plan to fix up the home, buying a foreclosure may not be the best bet for you.
- Foreclosures are rarely in 'show' condition. Similar to above, even if the home needs very little actual repairs, it may be completely trashed. You have to be able to look past the mess and see the possibilities of the home.
- Foreclosures are truly sold "As Is." Most homes are sold as-is in NC, but in a standard contract, you have a 'condition contingency.' Like the loan contingency, in the Hickory, NC area at least, many REO's have removed ALL contingencies from the offer. In a nutshell, that means that finding damage during an inspection you may have missed will not be a contract contingency to help you get out of the contract and retrieve your earnest money.
- Be prepared for a Bid War. Especially if the home is already priced right for the condition. There will be a lot of people interested in the property, especially investors, and they will bid higher if it meets their numbers.
- Don't wait to make an offer. Many people that are interested in a foreclosed home as their primary residence will often wait on making an offer on it. Sometimes, it's because of the condition, but in a lot of cases, it's because they want to wait to see "how low it'll go." If it hits the market over-priced, that may work, to a point, but usually what happens, is that they miss the opportunity to make a bid at all because someone else didn't wait. See #5.
- Don't get discouraged. You may miss out on a few foreclosures, even if you do get your offer in. That's just part of dealing with foreclosures. Still, if you think a particular house was the "IT" house for you, you may still have a shot. This is still a tough market, especially concerning financing. Many times with foreclosures, something happens in the deal that prevents it from closing and it goes back on the market. So keep checking until it says "SOLD."
If you're interested in buying foreclosures in the Hickory NC area, sign up for my Foreclosure Hunter Program today or give me a call.
photo courtesy of Andrew Bains flickr photostream
Roger Johnson is a Realtor with CENTURY 21 American Homes in Hickory, NC.
I service the Catawba and surrounding counties, and the Hickory, Newton, Conover, Taylorsville, Claremont, Statesville and Charlotte, NC real estate markets.
Visit us on the web at: www.HickoryNCHomeSearch.com
You can contact me via Email or give me a call at 828-381-9245 or 828-568-2121 ext 310
Please be green and recycle. When you are done reading this post, please recycle it by forwarding it to someone you think who will enjoy reading it as well. Thank you!
As quoted in the New York Times "A Little-Known Loan Program", and in the Hartford Courant "Moving In:Couple Combining Households Buys In Newington" and "Moving In... New Britain"