Buying Repossessed Houses | Oklahoma Real Estate Matters

The numbers of repossessed homes have been on the rise since 2005, even prior to the worldwide economic crisis. According to The Council of Mortgage Lenders, in 2004, around 7,000 homes were repossessed. But in 2005, it doubled up to around 14,000 until 2007 where the number was at its peak at around 25,000. However last year, the numbers of repossessed houses were reduced to around 9,000. This provided opportunities for first-time owners and investors to purchase homes well under their actual market value. The phenomenon of buying repossessed homes has become so popular that there are TV shows showing how to buy them and then fix them up to resell them. However, there are a lot of things to consider before deciding to purchase repossessed homes.

Homes can be purchased before the repossession stage through a quick sale or after the foreclosure process has been completed via an auction. Both options have their own advantages and disadvantages, and it is best to review these factors before making a decision. If a house is being purchased in a quick sale, the seller?s lender has agreed on a discounted price so that the house can be released on an existing mortgage. The lender must accept the offer not just the seller. However, the process can often become lengthy and complicated. Often a deal cannot be reached and this can incur financial costs to the buyer who may have invested funds in surveys, paperwork or solicitor fees,

After a house is repossessed, it is usually auctioned and the property will go to the highest bidder. Most banks will require you to show a proof of financing before you are qualified to bid on a property which will in turn require you to put forward a substantial cash downpayment. If you are not sure which approach to opt for, it is best to seek the advice of a qualified professional such as your local real estate agent or solicitor.

There are a number of websites that offer foreclosure listings, however most of them require a membership fee which can become quite costly. However, often the fee can prove to be a good investment as these sites provide legitimate deals which aren?t on the public market.

There are other resources which offer free foreclosure listings. One option is to contact your local real estate agent for listings of repossessed houses in your area. Most banks will contact real estate agents to get their bank owned properties back in the market. Another option is to go directly to bank or auction organisers for a copy of the latest foreclosed properties. Some banks maintain a list of properties available for auction on their websites. There are also domains which offer foreclosure listings free of charge, including government websites.

There are other things to consider before buying repossessed houses. The process of purchasing a repossessed home can become overwhelming and it would be best to seek the assistance of a trusted real estate agent as well as a reputable solicitor to help close the sale. Next, you should evaluate the amount of money you are willing to spend including the cost of potential repairs and renovations on the house. If you are thinking of reselling the house, make sure to invest an ample amount in the repairs and renovation to make sure that the house is livable for a potential buyer. There are also other unplanned expenses that might come along so make sure that your personal finances are in order before taking the plunge. Subsequently, the location of the property should be considered as well. The location can increase or decrease the market value of your property, so try and make sure that the property is a decent neighbourhood. Finally, before buying repossessed houses, it is best to have a professional inspect it for any underlying structural problems.

In summary, buying a foreclosed home can really be a great investment, however, it is best to do your research and learn what?s involved before going progressing to the next stage.

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Source: http://oklahomacityrealestatemarket.net/2011/10/02/buying-repossessed-houses/

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