Owning a home is a dream come true for many people. Individuals save up for many years so that they can buy a house. If you are lucky enough, you may have the entire amount required for the house of your dreams. However, in most cases, people go for mortgages. The problem with this kind of an arrangement is that if you are not able to pay, you may lose your house. Such a house may be placed for auction, but before you buy one read the tips below on Virginia foreclosure sales.
Understand the history of the house. It is a good idea to know a bit more about the house you want to buy. Find out why the house is being foreclosed. In most cases, foreclosures are a result of defaulting mortgage payment for a period exceeding 60 days. However, a house can also be foreclosed due to accumulation of property taxes to the extent that the owner can no longer pay them.
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.
You need to inspect the foreclosed house. Most auctioneers sell foreclosed houses as they are. Meaning that you may not be permitted to inspect the house. While such an inspection may seem useless on their part as it will not affect the value of the house, it is important to the buyer. You just need a glimpse of the state in which the house is in.
Set aside some cash for repairs and innovation. In most cases, property owners with loans lack adequate fund to cover their mortgage. Thus, you may have the house in a neglected condition as the owners could not carry maintenance. Moreover, when people suspect that their property may be foreclosed, they just choose to forgo regular maintenance.
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.
Understand the history of the house. It is a good idea to know a bit more about the house you want to buy. Find out why the house is being foreclosed. In most cases, foreclosures are a result of defaulting mortgage payment for a period exceeding 60 days. However, a house can also be foreclosed due to accumulation of property taxes to the extent that the owner can no longer pay them.
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.
You need to inspect the foreclosed house. Most auctioneers sell foreclosed houses as they are. Meaning that you may not be permitted to inspect the house. While such an inspection may seem useless on their part as it will not affect the value of the house, it is important to the buyer. You just need a glimpse of the state in which the house is in.
Set aside some cash for repairs and innovation. In most cases, property owners with loans lack adequate fund to cover their mortgage. Thus, you may have the house in a neglected condition as the owners could not carry maintenance. Moreover, when people suspect that their property may be foreclosed, they just choose to forgo regular maintenance.
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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