5 Things You Should Do Before Buying a Foreclosed Property


1
Make Sure there are no Outstanding Liens
You may have gotten a good deal on the mortgage, but you also need to account for any past-due property taxes, homeowner's association fees and repairs to calculate the total cost of the home.
You may have gotten a good deal on the mortgage, but you also need to account for any past-due property taxes, homeowner's association fees and repairs to calculate the total cost of the home.
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Before you buy a foreclosed property, you'll want to do a title search to see if there are any other strings attached to the house. The previous residents may have had more than just a mortgage that they couldn't pay (like property taxes or homeowner's association dues). You can check court records for this kind of information, or you can hire a lawyer or title company to search for liens.

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Sources

  • Bank of America. "Buying a foreclosed home." Bank of America. (Jan. 20, 2012) http://learn.bankofamerica.com/articles/home-loans/buying-a-foreclosed-home.html
  • Fletcher, June. "How to Buy a Foreclosed Home." Wall Street Journal. Nov. 11, 2008. (Jan. 20, 2012) http://online.wsj.com/article/SB121640621223565845.html
  • Leamy, Elisabeth. "Buy a Foreclosed Home and Save Big!" ABC News. Mar. 2, 2011. (Jan. 20, 2012) http://abcnews.go.com/Business/ConsumerNews/save-big-buy-foreclosed-house/story?id=13052724#.TyLii-NSTvM
  • Lewis, Holden. "5 tips for buying a foreclosed home." Bankrate. (Jan. 20, 2012) http://www.bankrate.com/finance/mortgages/5-tips-for-buying-a-foreclosed-home-1.aspx

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