As Certified Distressed Property Expert, Home Destination has a long-term relationship with the banks in your local area, and often knows of listings that haven’t even come on the market yet. Call about the listings that you’re interested in, and also ask them about listings that may be coming up. Experience says that sometimes it may take a day or two or even a week before a listing actually comes onto the database. Gain an experts advice if you are buying distressed properties ; Home Destination is committed to helping investors navigate the requirements and come up with the best investment decisions.

Several Advantages When Buying Foreclosed Homes

The lender already knows that there are risks associated with buying distressed properties and may be willing to compensate the buyers or investors by selling the foreclosed home at a much lower price than the property’s real value in the market.

Buyers can become beneficiaries of the expanded tax credit

Typically most of the fees and processes will be handled by the bank to ensure the transactions go smoothly and according to new banking regulations

If you are going to use the home as your primary residence, the First Look initiative gives homebuyers 15 days to buy Homesteps homes without investor competition

Buyers can become beneficiaries of the expanded tax credit

Possible Disadvantages When Buying Home Foreclosures

If the process is still in the early stages, the defaulting homeowner may still occupy the home and home evictions may be long and challenging.

Some distressed homeowners, knowing they will be losing their home due to defaulting on the mortgage payments, neglect basic upkeep or even resort to destroying the property. Since many foreclosures don’t have the time for an inspection during a sheriff auction, they are not inspected prior to purchase, and it means that the buyer stands the risk of paying for a building that may have hidden repair costs.

There is a risk that the defaulting home owners may seek to take out their sense of injustice by engaging the new buyer in legal tussles.

If you goal is take advantage of the foreclosure deals on the market, you may find your selection more limited.

There often is little, if any, room for negotiation. The home comes as is and the buyer may have unknown surprises to deal with later.

Cautions When Buying A Foreclosure

Be sure to obtain a title report — the lender forcing the house into foreclosure may not be the 1st lien holder, meaning you could be buying a house with another mortgage on it. Be sure to check if there are tax liens (and others) on the property. Tax liens can be hefty, and a certificate holder may — even after a period of time, force a sale, unless you pay them.

The loss mitigation reps assigned to the property may have hundreds of cases to handle at the same time and are paid on performance. A kick out price is determined by a supervisor and the loss mitigation rep is given a monetary incentive to gain a higher price from the buyer if possible.

Jenna Thuening, a Certified Distressed Property Expert helps buyer understand the advantages and disadvantages of buying Minnesota foreclosed homes.