Jump to:
Buying a home is no easy task; especially with the highly competitive realty market today. You might want to purchase a new home in a very popular and elite neighbourhood like Gulf breeze, Florida but your finances might constrain you.
Many buyers are also intimidated by the thought that the monthly mortgage payment of the house might not be affordable. This is where a foreclosed property comes in.
Foreclosed properties are a feasible option for both owner-occupants and investors to get a pocket-friendly deal on a property. However, it is a popular opinion that buying a foreclosed home is way more complicated than getting a home.
It is believed that foreclosed properties come with numerous challenges, and people are so blinded by the beliefs that they don’t even attempt to look for themselves.
Poorly maintained, structural issues, damages, problems with lenders and so on are a few stigmas associated with foreclosed homes.
However, buying a foreclosure home is not that difficult. Before we talk about the pertinent steps to follow when buying foreclosure homes, let’s understand what foreclosure homes are.
Foreclosure homes are homes that are put on sale when the homeowner fails to make payments on the mortgage loan. The lenders seize and sell the property since the borrower is unable to meet their repayment obligation.
And, booming locations like Gulf-breeze have exorbitant prices which keep rising. As you move closer to the sea, the prices rise. The stunning views that properties at Gulf Breeze offer make it difficult to resist. You can’t give up on such a dreamy house; neither can you afford it. What do you do then? Look for a foreclosed property in Gulf Breeze!
Here are the steps, when followed, can get you the most relevant foreclosed house.
A] Research the Different Methods
There are several ways to get your hands on a foreclosed property. So primarily let’s get acquainted with these.
Buying from Homeowner
Buying from a homeowner doesn’t really classify as a foreclosure; the term used here is a short sale. This is a precautionary sale made by the owner himself to avoid having his property foreclosed.
Short sales are carried out with the goal of offering their home at a price that’s low enough to ensure a quick sale before they fall behind on their monthly payments.
The sellers will usually agree to your offer but the bank or lender might deny it, making it mildly tough.
Buying At an Auction
Traditionally, foreclosed homes are sold at a real estate auction. Once the homeowners are claimed as defaulters’, banks or lenders take ownership of the property, which is then put on sale. Buyers can instantaneously claim the property but must possess ready cash.
You can also buy from a bank/lender directly on an open market or buy government-owned foreclosure properties.
B] Take Help of a Realty Service
Buying a foreclosed property follows almost the same process as purchasing a home. It is, however, believed to be riskier and requires additional research.
The Gulf Breeze, nestled in the Pensacola Metropolitan Area has seven constituent neighbourhoods, and it is very difficult to find the desired foreclosed property without the support of a realtor who knows the suburb inside-out.
Realty services are a must as their accompaniment can save you from every risk involved in buying a foreclosed property. Realtors can research thoroughly and guide you in the right way to help you get the most suitable foreclosure property.
You can always discuss challenges you could run into with your realtor. They can serve as a trustworthy source and get you an authentic and quality deal.
C] Determine How Much Home You Can Afford
Foreclosed homes are definitely cheaper than normal properties but budgeting is important even when you go to buy them.
Craft a budget including estimates of monthly income and expenses.
Remember! You cannot deny the probability of repairs in the near future. Therefore, when you buy a property, keep some finances ready to fulfil the expensive repairs.
D] Get Preapproved for A Mortgage
As is for any home, pre-mortgage can make you an attractive buyer. Since foreclosure cases are a result of not being able to make repayments, you as a buyer, need an exceptional credit score, so the lenders can trust you.
With a pre-approved mortgage, you can be certain of what you can afford and begin your search accordingly.
E] Get a Home Inspection
This is a step you must not avoid at any cost. The repairs needed in a foreclosed home are not covered by lenders, banks or the government.
If repairs come up; they will be your responsibility. This is why it is imperative you get a thorough home inspection done by a professional. Your realtor will probably have contacts of good home inspectors.
After receiving an extensive report, you can either choose to walk away from the deal or fix the issues if possible and proceed further.
If you have a tight budget but want to own a house in the Gulf Breeze, foreclosed properties are for you. However, don’t be abrupt. Discuss the pros and cons with your realtor and then make your decision.
