How To Buy A Foreclosure Home

If you are the first time buyer with little or no money, these foreclosured houses can be a great option for you. You may have seen them popping up everywhere you look on your way to work. Whether it is due to faulty adjustable rate mortgages (ARM), inflated home prices, or loss of employment, more and more people are in the unfortunate situation of being in foreclosure. With the housing market declining more and more, a bright side may be seen from all the turmoil. It is true that those who do not know history are doomed to repeat it, even if that history is only a handful of years ago.
The bright side to this housing situation is that first time home buyers can learn from the mistakes of the last few years, while at the same time leaving their rental for a home valued at a substantially lower cost with historically low interest rates. What this means to the faithful renter is that you could be paying the same, if not less per month, for the home you have always wanted. Why should only the bankers get a "rescue package"? This current time is the renters rescue package into home ownership by implementing 4 very basic tips in buying foreclosed properties:
1. Check the condition of the house. Foreclosed homes that are of a slightly less than desirable condition are usually available at a much lower price.
2. Get the home inspected. This tip could mean the difference from dream home to never-ending migrain. Contact a local inspector and factor in those "fix-up" costs in your total offer. Choose properties with cosmetic problems as opposed to structural problems as these would be very costly to get repaired.
3. Get Professional help in the form of a local Realtor who speacializes in foreclosed properties. The best part about this tip is that a realtor can provide a wealth of information and you don't have to pay a dime. Realtors get paid by the sellers, not the buyers.
4. Have your Realtor negotiate on your behalf. They know the ins and outs and can factor in items that you probably never thought of in order to get the best deal on the house.
5. Shop around for a mortgage specialist. Speak to at least 3 different mortgage lenders and find who has the best interest rate.
Foreclosed homes are very easy to transact, which is why they would be an ideal choice not only for the investor, but more so for the renter who dreams of home ownership. It is not unusual to find foreclosed homes that are anywhere from 20-30% off. So on a once $500,000 house it could be sold at roughly $400,000. One final word of warning for the soon-to-be home owner, What ever you do, DO NOT be sold on interest only or adjustable rate mortgages. Learn from the mistakes of those before you, and lock yourself in to a 30 year fixed.
Abdullah Alnassar is a Freelance writer in Washington DC. His areas of commentary range from finance and business to current events. You can find out more about surviving a down housing market by visiting his blog, Foreclosure Houses - Your Most Profitable Choice http://profitableforeclosures.blogspot.com/
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