These days it seems as if there are bank owned properties on every block. If you are looking for a new home in Phoenix, Flagstaff or hundreds of other cities or towns, an Arizona foreclosure may offer a great bargain for you.
If you plan to buy a bank foreclosure, it pays to have your financing in place before you make an offer on a home. Just because a bank owns the property does not mean that they will be willing to make a loan on the property to you. In fact, most banks do not make loans on property for which they have foreclosed. Their investors feel that they have lost enough money on that particular property and are not willing to take a chance on losing more money. Having your own financing in place will give you a greater leverage as you make an offer on the home.
Even in good economic times, bank foreclosed homes offer a bargain. Banks want to have these foreclosed properties off their books, so they are willing to sell them at below the market value. In addition, many times the original loan was made when property was selling for lower prices and the former owner will have made several years of payments, so the bank does not have to get market value for the home.
As with any other property, you should make sure that the property you are purchasing is free of any other claims such as liens. Most of the time the title company will make sure of this before issuing title insurance on the property. It should be up to the bank to satisfy these claims before you close on the property. Title insurance will assure you that any claims that may have been missed will also be covered by the title company.
Some foreclosed homes will require repair to make them livable. The financial problems of the former owner may have caused them to neglect some of the normal maintenance procedures and repairs that should have been made on the home. In addition, bitter homeowners have been known to damage homes that are being foreclosed. You may want to pay for a home inspection before purchase of the home.
Home ownership is not for everyone. Persons with jobs that require frequent moves may be better off living in rented property. This prevents being stuck with large investments and house payments for a place where you are not able to live. The housing market can sometimes make it difficult to sell a home for the money you have invested quickly, but over time you can often see your investment grow.
Wise home purchasers always use due diligence in determining the actual value of a home that they are considering for purchase.
When in the market for a new home, do not overlook the value that may be found in an Arizona foreclosure.
If you plan to buy a bank foreclosure, it pays to have your financing in place before you make an offer on a home. Just because a bank owns the property does not mean that they will be willing to make a loan on the property to you. In fact, most banks do not make loans on property for which they have foreclosed. Their investors feel that they have lost enough money on that particular property and are not willing to take a chance on losing more money. Having your own financing in place will give you a greater leverage as you make an offer on the home.
Even in good economic times, bank foreclosed homes offer a bargain. Banks want to have these foreclosed properties off their books, so they are willing to sell them at below the market value. In addition, many times the original loan was made when property was selling for lower prices and the former owner will have made several years of payments, so the bank does not have to get market value for the home.
As with any other property, you should make sure that the property you are purchasing is free of any other claims such as liens. Most of the time the title company will make sure of this before issuing title insurance on the property. It should be up to the bank to satisfy these claims before you close on the property. Title insurance will assure you that any claims that may have been missed will also be covered by the title company.
Some foreclosed homes will require repair to make them livable. The financial problems of the former owner may have caused them to neglect some of the normal maintenance procedures and repairs that should have been made on the home. In addition, bitter homeowners have been known to damage homes that are being foreclosed. You may want to pay for a home inspection before purchase of the home.
Home ownership is not for everyone. Persons with jobs that require frequent moves may be better off living in rented property. This prevents being stuck with large investments and house payments for a place where you are not able to live. The housing market can sometimes make it difficult to sell a home for the money you have invested quickly, but over time you can often see your investment grow.
Wise home purchasers always use due diligence in determining the actual value of a home that they are considering for purchase.
When in the market for a new home, do not overlook the value that may be found in an Arizona foreclosure.
About the Author:
If you are looking for a new house in Phoenix, Flagstaff or hundreds of other cities or towns, an Arizona foreclosure may offer a great bargain for you. We've got the ultimate inside scoop on Az foreclosures .
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