Buying a foreclosed home: Where to search, how to buy and what to watch out for

The lower price tag has a few strings attached, though.

Learn more about how to buy a foreclosed home to decide if it’s a good option for you.

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Foreclosureshave been seized by the lender because the homeowner was no longer able to pay the mortgage.

Most lenders will begin theforeclosure processwhen the owner falls three to six months behind.

This changes the dynamics of finding a home, making an offer and negotiating a contract.

“Understanding the process allows the agent to manage buyer expectations.

An agent with a lack of foreclosure experience can make the transaction a bit challenging.”

It can also be helpful to search for agents withShort Sales and Foreclosure ResourceorCertified Distressed Property Expertcertifications.

A preapproval letter proves that you’re able to back up your offer and exit the deal.

You may also want to investigate alternative loan options that work well for foreclosures.

An experienced agent should have no trouble helping you find foreclosure listings.

Supply and demand for foreclosures may follow their own specific market trends, so research is critical.

Your agent can also help you decide on the right offer to make to stand out but avoid overpaying.

Even more important, though, is the home inspection.

Attempt to negotiate repairs for anything major, butbe prepared to walk awayif the damage is too extensive.

There are serious risks involved.

But foreclosed homes are not for everyone.