You'll need to make sure you're armed with the resources you'll need to buy foreclosed properties.
Tip: Start a file to organize all the documents and research that you'll accumulate during the process of searching for and buying a foreclosure or pre-foreclosure property.
Find a data source for properties Thanks to the advent of the Internet, you no longer have to visit the local courthouse each day to compile the property information yourself or wait for the property information to be mailed to you. RealtyTrac, the leading online marketplace for foreclosure properties, has a daily updated database of more than 550,000 pre-foreclosure, auction and bank-owned properties. RealtyTrac also provides tools and resources to help buyers and investors pursue property.
You can check if there are any pre-foreclosure, auction or bank-owned properties in your area. Simply go to RealtyTrac’s Free Property Search page and select the state and county or city or zip code and click “Begin Search.”
Register for a seven-day free trial subscription to get full access to RealtyTrac's property data and services.
Check your credit Check your credit and correct any credit problems you may have before applying for financing. You can use RealtyTrac’s credit check partner to order a free credit report.
Get Financing Applying for financing not only provides an estimate of what you can afford, but it enables you to move quickly once you locate a property that interests you. When you approach a borrower/owner or a foreclosing lender about a property, pre-qualification will demonstrate that you are a serious buyer and are ready to buy quickly. You can get financing with RealtyTrac’s financing partner.
Contact an Agent if needed If you're a first-time homebuyer and you've never purchased a home, let alone a foreclosed property, it is beneficial to contact a local real estate agent who can guide you through the process of buying a foreclosure. If you work with an agent, make sure they know your priorities. Not all agents have much experience with foreclosed properties, so ask any potential agents if they have experience with foreclosures. You can contact an agent using RealtyTrac’s agent referral network.
Make a checklist of what you're looking for in a home Your foreclosed property checklist should include as many factors as you can in order of their importance to you. You may not ever get the perfect home, but a checklist will help keep focus so you'll know when you find a property that matches your most important wants and needs.
