What to Expect When Buying Foreclosures in Orange County

While the foreclosure process is not an ideal situation for the home’s previous owners, it can be a way to find a home at a much lower price than you would find in a traditional sale.

However, with the opportunity for reward, there is also a risk. In this blog post, we’ll let you know what to expect when buying foreclosures in Orange County! 

While the number of foreclosures has leveled off a bit, there are still many to be found all across the country. More and more people have caught the investing bug thanks to increased media coverage on channels like HGTV. But before you go diving into foreclosure investing, there are a few things you should know.

You Are Buying As-Is

When a homeowner falls into foreclosure, they often fall behind on performing routine maintenance and repairs. A home that is not properly maintained can quickly start to show signs of wear and tear. And sadly, sometimes foreclosed homes can be vandalized by either the previous homeowner or by people who know the house is vacant.

It is very rare that you will be able to negotiate repairs into your purchase price. Banks know that there is a high demand for foreclosed properties, so they aren’t always priced at the “rock bottom” prices some people expect. Just because it is a foreclosure, does not mean you are getting a good deal. Have an inspection done, and don’t let repair costs negate your “savings.”

Financing Can Be A Challenge

 What to Expect When Buying Foreclosures - financingA bank isn’t likely to see a home with broken windows, ripped out appliances, damaged flooring and a leaky roof as a sound investment, no matter how low the owning bank has priced the home.

Most lenders have conditions the property must meet before they will give you a dime. Before making an offer on a home, you will want to get pre-approved or be paying in cash.

Sometimes banks will favor cash buyers as a cash buyer provides certainty, whereas accepting an offer that is being financed is more of a risk for them.

There Is Competition Everywhere

In every market, you will find seasoned investors that have been purchasing foreclosed homes. They will have the process down pat and be ready to make an offer the minute a good deal becomes available.

You have to know when to walk away from a property and also when to put in an offer immediately, as hesitation could cost you big time.

Working with a professional who understands the foreclosure process can help you put together an offer that will be well received by the bank. H&M Realty Group is always here to answer any questions you may have about the foreclosure process.

Costs Upfront

You might think that buying a foreclosure will save you a ton of money. And while this could be correct, you also have to prepare yourself for out of pocket costs you will need to pay up front.

A home that has been foreclosed on is likely to be ill maintained, meaning it could have fallen victim to vandalism, theft and be in need of some major repairs.

You will want to have a professional inspection done, which you will need to pay for yourself. You can consider adding in a contingency to your offer, which will allow you to revoke it should the home not pass inspections.

However many banks won’t agree to this and will move on to the next offer.

In addition, if the utilities are off, you will be asked to pay the cost of turning them on for inspection. It’s hard to check for leaky pipes if the water has been shut off for months.

You will also want to make sure the home is free and clear of any liens. Hiring a professional to run a title search can save you a lot of money down the line.

If you are ready to invest in a foreclosed property, simply fill out this form and we will contact you ASAP! Or feel free to give our office a call anytime! 949-625-4533

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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