Look at the property. Some unforeseen problems can be spotted if you take a peek at the property and at the title. The 20% you are saving on the purchase price may seem like a good deal, but if you don't look inside the property you may be in for an unpleasant surprise. We often see homes in pretty bad shape after they go into foreclosure. Families who have been financially strapped don't have the means to make repairs or any maintenance on the property.
Look at the title. Search the title and public records for any outstanding assessments, unpaid utilities, sewer, and water bills. Upon closing your attorney will perform a full title search. Making sure there is no leins or assessments against the property, whatever there is will need to be paid off before. Even though the leftover bills are not technically yours, they will need to be paid before anyone moves in.
Get a property inspection. Not all damage done to the house is visible. It is a good idea to contract for a private inspection. If you are buying a super-cheap home, it is a VERY good idea to to get it throughouly checked out. Typically home inspections can be performed in under an hour. Any repair costs should be used in your negotiations with the bank.
Contact the city for current tax and assessment information. Check on the cities taxes and assesments information and also if any association fees exist. Check with the city and Crow Wing county for any unpaid utilities, water and sewer bills.
Don't expect to to turn around a profit right away. Investors who buy intending to do as little as possible to a house, hoping to resell for a profit when the market turns around, may find small profits and a big headache. Some cities are starting to penalize neglectful property owners, charging penalties that increase over time. Investors are welcome in this market. Most are fixing up the houses they buy for rent or resell. Some experts believe this is what could turn around those neighborhoods most effected by a heavy foreclosure saturation. What's more, investors and new owner-occupants might get the satisfaction of helping to turn a hard-hit neighborhood around.
Answer these four questions:
Call the city and county. Ask them if there are any assessments for unpaid utilities, sewer and water bills.
Is there a septic tank or well on the property?
How long has the property sat empty?
Was it winterized or well prepared for sitting vacant?
For investors and homebuyers looking to purchase a bank-owned property there are a large number of bank-owned foreclosures on the market nationwide so, there has never been a better time to purchase bank own real estate.
There are foreclosed property usually a few stages at which you can buy a foreclosure property. At the first stage homebuyers and investors can purchase the property before auction. At auction the property can be sold to investors and finally if it doesn't sell at auction, a bank may purchase the foreclosed property if it isn't sold at the public sale.Once the home is owned by the bank, the property is then listed with a real estate agent. In the Brainerd Lakes Area good properties are still on the market, but buying a REO or foreclosed property isn't without risk and similar to any other large transaction, research needs to be done. Buying a bank-owned home in foreclosure isn't always easy, and without risk. Before you consider plunging into the foreclosure market, be sure to do your research and speak with a Realtor.
our Realtors are happy to answer any specific questions about purchasing a bank-owned home.
Jeff Torfin is a licensed real estate agent in Minnesota. Jeff has been involved in nearly every sale relating to multi-unit apartment buildings in the Brainerd Lakes Area along with numerous commercial developments in central Minnesota. In doing so, he has an extensive knowledge in the rental housing market in the Brainerd/Baxter areas.
Jeff has been involved in nearly every sale relating to multi-unit
apartment buildings in the Brainerd Lakes Area along with numerous
commercial developments in central Minnesota. In doing so, he has an
extensive knowledge in the rental housing market in the Brainerd/Baxter
areas.
Jeff has hands-on real world experience that he can put to work for
you. Being involved in both residential and commercial real estate
gives Jeff a well-rounded background in this market.
Disclaimer: All information on this site is provided for informational purposes only! By no means is any
information presented herein intended to substitute for the advice provided to you by any health care or other professional
or organization.
