Before you buy a foreclosure you should do the following.

Everyone knows the economy is in shambles.  The banks that have experienced huge financials losses due to negligent business practices are now increasing adjustable rate mortgages, push homeowners in to payments they can no longer afford.  This of course has led into a increase in foreclosures and has severely depressed a once flourishing housing market.  This crisis is terrible if you have a home that is within the foreclosure process but on the flip side is a great opportunity for an investor interested in buying a foreclosure  or for people wanting to save a lot of money on their next house.

The current crisis has caused more abandoned home than ever to be on the market.  Some homes you will find the foreclosure process has started but the mortgagee has yet to leave the home.  In other homes you will find that the home has foreclosed and ownership has reverted back to the lender and the lender is unable to sell it. 

Now may not see like a good time to buy with all of the deals that are to be had and the sheer amount of foreclosure on the market, the time to consider buying a foreclosure couldn’t be better. This is because these foreclosed, or about to foreclosed homes can offer some of the best deals to those seeking to buy.

When buying a foreclosure you will notice that foreclosures could be in any condition from good to bad, or even atrocious condition.  The condition that the property is in will determine the price that the bank is asking for it.  As crazy as it may sound it’s not unheard for properties to go for as under $10,000 some even less than $1000.  This is great news for you if you are looking for a bargain and if you have the skills and or income to bring the property into livable condition. 

But before buying a foreclosure here some things that you need to consider:

1.  Check the neighborhood.  You don’t want to buy the deal of a lifetime only to later find that you’ve purchased in a crime-ridden area that has little chance of ever appreciating in value.
2.  Check out similar homes on the market in the area to compare the prices that are being asked for them.  You want  to make sure that the bank is really offering you a deal and that the prices are comparable or less than the other houses on the market, especially if you have to be a considerable amount of time and money in it to get it habitable.
3.  Consult your real estate professional during the buying process.  An attorney should be a member of your team they will be able to alert you of any legal issues that you may inherit from the foreclosure being purchasing. 

Look into all 3 of these things thoroughly, and you just might find yourself with the house of your dreams at a price you can sing about!