Foreclosure Determination: Making the Right Decision for Your Lifestyle

Maybe you’ve been house hunting for a while and you’ve seen a property marked as foreclosure, but wasn’t sure exactly what that meant. Buying a foreclosure isn’t for everyone, but with the right information and resources, you can decide if it’s something you’re interested in pursuing.

There are pros and cons to buying a foreclosure. You might end up getting a really great deal on your dream home!

What is a Foreclosure?

According to Balance, it’s a legal process in which a lender attempts to recover the balance of a loan from the borrower. The homeowner either abandoned the home or voluntarily deeded the home to the bank. The bank foreclosed on the mortgage or trust deed and seized the home. In turn, you are technically buying a bank-owned home or a home sold by the trustee
You should really consider pursuing a foreclosure if this list gets you more excited about buying a home!

  • They are still cheaper by 5% below a comparable house in the same location
  • Cash is king
  • The seller will want a preapproval letter from a lender before accepting an offer
  • There is little, if any, room for negotiation
  • The home comes as-is, and it’s up to you to pay for repairs
  • You want a project and to make the foreclosure your home
  • Most bank-owned homes are vacant, which can speed up the process of moving in

If you said yes, here are your next steps:

  • Stick to a budget
  • Choose an agent
  • Find a lender if needed
  • Apply for a mortgage pre-approval
  • Obtain a list of foreclosures in your ideal location
  • Obtain all cash and be prepared to purchase on the courthouse steps at the trustee’s sale

If you said no, here are your next steps:

  • Stick to a budget
  • Choose an agent
  • Find a lender
  • Apply for a mortgage pre-approval
  • Write down the needs and wants you are looking for
  • Obtain a list of homes in your ideal location

Now that you have a better understanding of what a foreclosure is and you have determined what fits you the best, you can look forward to Brad at RE/MAX Gold representing you with whichever you decide. You can call at (707) 246-4584 or email him at [email protected].

Get in touch with Brad

Brad at REMAX Gold | | 707-246-4584 | [email protected] | CalBRE #: 01233902