How To Negotiate A Foreclosure Purchase Agreement
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Once you have found a suitable pre-foreclosure property through a paid foreclosure listing site and have made contact with the owner it’s time to do a walk through.
The property should meet your standards, although a foreclosure home might be in need of some repairs. In some cases these could be extensive. Just make notes on these costs and subtract them from your offer price.
If you are willing to put in some work, you may be getting yourself a “real bargain”.
Now you are ready to get into negotiations. Keep in mind that you will be negotiating with the foreclosing lender and the owner.
You might want to hire a real estate agent or a lawyer to handle these negotiations.
The way these things work is that you may be able to pay off the default amount and assume the current mortgage, or you may need to pay off the full amount of the loan. You may also have to pay off any liens, if there are any attached to the property.
You might be able to pay off the debts owed at a reduced rate, saving the lien holder the trouble of collecting the amount from the owner and getting you a better deal at the same time.
The desired final result will be that you get a good deal on the property and the owner should be able to walk away with some of the equity they had built up.
You should be able to get a pre-foreclosure property at 20 - 40% off the market value.
The next step is to put everything in writing with everyone involved. Get an attorney to do this and possibly save yourself a lot of trouble later on.
Your attorney will also conduct a title search and arrange for a property inspection to make sure everything is alright.
…coming up: How To Buy Foreclosures At Auction…
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment