What questions to ask before buying a foreclosed home?
- 1 decade agoFavorite Answer
1 Have a Realtor that's been around the block a few years and well versed in dealing with Foreclosures.
#2 Always use an Attny. Under the contract you always have 5 days for Attorney Modifications (your out if you screwed up)
#3 Most Foreclosures have busted pipes and no water running in the home, expect the worst and hope for the best
#4 Check for un paid bills to local Government Agencies before buying , most do not show up on Title Search and still follow the property and more importantly will be the new owners responsibility !!
Lastly...You can get some great deals on Foreclosures , the Reward far out weighs the risk..
Good Luck !!Source(s): 15 Year Flipper and Landlord
- loanmasteroneLv 71 decade ago
The answer to your question depends on if you are purchasing a pre-foreclosure or a bank owned foreclosure.
If this is a bank owned foreclosure then you should have a real estate agent that should be well versed on the purchase of bank owned foreclosures.
Questions are asked for several reasons
#1 To determine a offer price
#2 To determine any possible damage
#3 To find out the owners reason for selling the property thus any reduction in the asking price.
So you may form your questions based on what you are seeking to do.
There are many things you should do, but the first thing you should do is contact a mortgage broker that does FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.
You will need proof of income so have available pay stubs, w-2, bank statements and other items your mortgage broker will require.
He will inform you of what is necessary once you contact him.
This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.
I hope this has been of some use to you, good luck.
- 1 decade ago
Are there any leins on the property? Are there any back taxes owed? Does the county have any work that will be happening on the property in the future (my friend had this happen to her...the house was next to a big drainage ditch...and the county came through and ripped up the ditch, severed the gas line, cut her power, and then her basement flooded because the sump pump didn't have battery backup. Make sure you know if there are any projects that the city/county is going to do in the future).
- Anonymous1 decade ago
The same questions as any other home. Get information on any repairs, how old the roof, electricity, plumbing, etc is. Have the walls, doorways, roof, and windows checked for insulation and energy efficiency. Stuff like that.
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- npkLv 71 decade ago
You mean a bank-owned (REO) property? The same questions you'd ask for any other house.