United Country Real Estate 2021

As a residential specialist, I hear these questions all the time: “Can you help me buy a foreclosure?” “What about a bank owned home?” “I saw on Zillow that this house is a pre-foreclosure. Can I buy it?” Honestly, any agent can help you buy a bank owned home, but an experienced REO (i.e., real estate owned, or foreclosure) agent can make a huge difference in the process and in your costs. Some of this may sound scary, but with the right agent it’s not so bad. Let’s start with the basics. SO...YOUWANT TO FORECLOSURE? buy a by Kathy Jackson

Financing – You’ll need proof of how you plan to make the purchase. Rent-to-own or contract sales aren’t an option. Plan to use cash? Get documentation from your bank. If you’re seeking a mortgage, there are other issues to consider. Type of Loan – There are many types of loans but not all homes qualify for all loans. Speak with your agent and lender to determine your options. Veterans Affairs (VA), rural area (USDA) and Federal Housing Administration (FHA) loans are strict on guidelines for a home’s condition, and may not cover renovations. Situations can also vary depending on which bank owns the home. There are some rehab loans available (discuss with your lender and agent). FindingYour Home – Your agent can give you a list of banked owned houses, or you can find these properties on various real estate websites. No matter what you’ve heard, there is no secret list you can buy of bank owned homes. Showings – Viewing these homes can be fun, but sometimes you’ll find bad things. I’ve seen mold, bad floors, holes in closets, and broken staircases. Some properties need everything removed, some not as much. Rarely does a house just need paint and deep cleaning. Most need some major work with the windows, roof, flooring and/or plumbing. Inspections – Expect surprises. Sometimes an inspection isn’t necessary (e.g., if you plan to gut or bulldoze the house and start fresh). Otherwise, conduct the inspection once your offer is accepted so you can decide if you want to move forward. Inspections prior to an accepted offer can get expensive. Also, most contracts have a kick out clause for inspections.

FinalWalk-Through & Closing – Right before closing, do a final walk-through of the home to ensure nothing major has changed. At closing, you’ll typically receive your keys (seller probably won’t be there). Some bank owned properties use master keys, in which case you should change the locks. Congratulations, you have successfully purchased your first bank owned home! more than a decade of experience in real estate owned (REO) properties, foreclosures and Housing and Urban Development (HUD) properties in large and small markets. She is a broker with United Country | Burke Auction and Realty, and serves as the Director of REO and Foreclosure Properties for all of United Country Real Estate. Learn more about Kathy at www.KathyJacksonRealEstate.com. About the Author Kathy Jackson is a successful real estate broker with