The common vision of purchasing a foreclosure property (also known as REO or Bank Owned) is purchasing a home at pennies on the dollar in the most desireable area possible. The reality of purchasing a foreclosure is quite a bit different and needs to be understood. Here are some tips to consider if you are looking for a foreclosure:
- You DON'T have to pay for a service like realtytrac if you don't want to
- Foreclosures are listed in the traditional Long Beach MLS
- Foreclosure properties are sold as-is, meaning what you see is what you get
- Banks often penalize you (from $100+ a day) if you go over the period that you agreed upon for the escrow period (so be prepared to get that escrow done in 30 days! :) )
- Foreclosures that make it to the general public are generally not in high-end luxury communities but can be in some pretty nice neighborhoods
- Strong discounts of 10-20% of retail can be expected but don't expect to get one for 10 cents on the dollar
Have fun searching for foreclosures as you can get some great deals on them, but just be aware of what you are getting into.
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