Foreclosures Equal Big Business
Know all the facts before buying a foreclosed home
Foreclosures across the country are on the rise. According to RealtyTrac, more than 1.2 million foreclosures were filed nationwide in 2006. U.S. foreclosures in June 2007 jumped 87 percent compared to June 2006 with more than 164,000 foreclosures.
Ohio documented the nation’s third high state total in June 2007 with close to 12,000 foreclosure filings, up 100 percent from June 2006. Dayton ranked 26 out of 100 cities in the first quarter of 2007 with more than 2,300 foreclosures.
Losing a home is devastating, but it’s also a window of opportunity for someone in the market for a house. When you’re considering buying a foreclosure, know your options. These properties can be purchased through pre-foreclosure, at auctions where you bid against other interested buyers; or from a lender, known as real estate owned property.
You may want to hire a real estate agent to help guide you through the process. Make sure you find one with foreclosure experience.
If possible, schedule an appointment to view the property. This will help determine any structural damage, rodents, termites, plumbing and heating issues. Be aware if you purchase the house at an auction, you may not be able to look inside the home or conduct a home inspection before the sale.
Conduct a title search to find out whether the property has a second mortgage or lien against it. If it does, you may be responsible for paying off the initial mortgage and any second mortgage loans and liens on the property before you take ownership.
You may want to get pre-qualified. Securing your financing early in the process will help ensure eligibility to purchase the property and gives you bargaining power when it’s time to make an offer.
Have your agent check nearby or comparable homes to see if the asking price for a foreclosed home is a bargain. Don’t base your decision solely on price. Consider the property’s condition and neighborhood.
In Ohio, all foreclosures are handled through the courts. And, the sale price must be at least two-thirds of the appraised value and the property is sold to the highest bidder.
Buying a foreclosure can be a rewarding investment, but requires a lot of research, preparation, patience and persistence. The Better Business Bureau can give you a list of trustworthy real estate companies or reliability reports on more than 150 real estate companies
By Sheri Sword
Dayton Daily News
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