1. Thinking that all foreclosures are the result of nasty bankers who toss tenants out in the cold.
2. Not realizing that buying a foreclosed home can give you more flexibility in your loan, better purchase terms and a better price.
3. Not knowing where to find these types of sales. This means fewer opportunities for you to find a good, reasonably priced home.
4. Not checking into the foreclosure listings on your own. You can find listings with HUD, VA, Fannie Mae and Freddie Mac. Some listings are even available on the web.
5. Not realizing that you need to be prequalified for your mortgage before you apply.
6. Not making sure that the purchase allows for fix-ups. This can be critical if the home is damaged in any way.
7. Not considering your financing options before you get prequalified. Freddie Mac offers financing, as do other agencies.
8. Thinking that once you find the foreclosed property, the sale will be like any other. Don't count on it. These types of sales can add up to a little more red tape and paperwork. But the better terms normally more than make up for the added hassle.
9. Not considering how much your broker can help you in these types of sales.
10. Not considering resale value before purchase. Be careful to look at the neighborhood and potential resale value.
These Are the Facts About Foreclosure Sales...
It's a little-known but LARGE segment of the real estate market.
Ready, set, GO...
...get a good deal! But first, do the Quiz.
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