Everyone wants to own a home; no one wants to spend the rest of their lives paying rent. However, not everyone has the ability to buy a house in cash. Hence, most people end up taking mortgages. The downside of this arrangement is that the house may be repossessed if the owner defaults on payment. If you are interested in buying a house placed under Virginia foreclosure sales, you better read the tips below.
Get some background information about the house. It is always advisable to research the history of the house. Know why it is being auctioned and if there are any legal issues regarding the sale. Houses are normally foreclosed ether for tax arrears that the owner has indicated he can no longer pay or for mortgage defaulting.
Ensure that you get pre-approved for a loan. Pre-approval is important when buying a foreclosed home. You should ensure that this is done before the day of the auction. The lender will review your income, assets, and debts and approve you for a certain loan amount and duration. However, if your score is poor, your approval may be denied.
Carry cash to the auction. Not a lot of cash, just enough to pay the deposit in case you win the bidding process. You will have to pay the deposit, which is normally 30% and pay the remainder in 90 days or as stimulated by the auctioneers. If it is too much cash, then just carry a cashiers check.
Conduct an inspection of the foreclosed home. In most cases, the auction house is sold as it is. This means that bidders may not be allowed to inspect the house before the auction. This part is a little bit tricky because you may end up with a property that will cost you so much in repairs.
Ensure that you have some money for repairs. Do not put everything in the purchase and you end up with a house that requires so many repairs yet you do not have the money for that. Most foreclosed houses are normally neglected and will need some bit of repairs to return them to a good condition. Once an owner has known that foreclosure is a possibility, they generally start to ignore general maintenance issues.
Inspect the neighborhood and look around the house. You want to know about the neighbors; whether they are friendly, the general security in the area and so on. Generally, just walk around and get a feeling whether you really want the house. If you are buying so that you can resell, then this is not necessary.
Do your homework. You should know the minimum bid ion the house even before it is announced. You should also know the estimated cost of the house.
If possible, organize with a building inspector to inspect the house and provide you with a detailed report of what need to be repaired. Normally, the electricity and plumbing will need updating. Certain appliances may also need to be replaced to return the house to its original condition. Remember that this is only possible once you have acquired the house.
Get some background information about the house. It is always advisable to research the history of the house. Know why it is being auctioned and if there are any legal issues regarding the sale. Houses are normally foreclosed ether for tax arrears that the owner has indicated he can no longer pay or for mortgage defaulting.
Ensure that you get pre-approved for a loan. Pre-approval is important when buying a foreclosed home. You should ensure that this is done before the day of the auction. The lender will review your income, assets, and debts and approve you for a certain loan amount and duration. However, if your score is poor, your approval may be denied.
Carry cash to the auction. Not a lot of cash, just enough to pay the deposit in case you win the bidding process. You will have to pay the deposit, which is normally 30% and pay the remainder in 90 days or as stimulated by the auctioneers. If it is too much cash, then just carry a cashiers check.
Conduct an inspection of the foreclosed home. In most cases, the auction house is sold as it is. This means that bidders may not be allowed to inspect the house before the auction. This part is a little bit tricky because you may end up with a property that will cost you so much in repairs.
Ensure that you have some money for repairs. Do not put everything in the purchase and you end up with a house that requires so many repairs yet you do not have the money for that. Most foreclosed houses are normally neglected and will need some bit of repairs to return them to a good condition. Once an owner has known that foreclosure is a possibility, they generally start to ignore general maintenance issues.
Inspect the neighborhood and look around the house. You want to know about the neighbors; whether they are friendly, the general security in the area and so on. Generally, just walk around and get a feeling whether you really want the house. If you are buying so that you can resell, then this is not necessary.
Do your homework. You should know the minimum bid ion the house even before it is announced. You should also know the estimated cost of the house.
If possible, organize with a building inspector to inspect the house and provide you with a detailed report of what need to be repaired. Normally, the electricity and plumbing will need updating. Certain appliances may also need to be replaced to return the house to its original condition. Remember that this is only possible once you have acquired the house.
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