When it comes to purchasing real estate today there is allot to understand and allot to consider.
With the highest jobless rates across the United States since the Great Depression, many families are finding it impossible to afford their homes.
Foreclosures and bank repossessed homes are at an all-time high.
This means that many new home owners are presented with low cost properties to choose from over those at market value.
However, there is much more to these homes than meets the eye.
First, a foreclosure and a bank owned home are not the same thing.
A bank owned home is one that has already gone through the foreclosure proceedings and failed to sell at a real estate auction.
The reason a house fails to sell at these auctions vary, but in most cases it is due to the asking price being higher than market value.
Not all homes that are in the foreclosure categories come at a low price.
Banks are required to get the highest dollar on these homes to help offset the balance of what is owed.
Due to the increase in these types of houses, many banks have an outside loan officer that handles all of their foreclosure accounts.
Foreclosure homes are often listed in an AS IS condition.
As a buyer, you are not allowed to see the house prior to purchase.
You will attend an auction and bid on the house with other potential buyers.
The price of a foreclosure home is often lacking additional fees that are later added on during the close of the sale.
Some of these fees include secondary mortgages the previous owners had on the house, past-due taxes, and unpaid accumulated interested on loans.
With a bank owned home you have the option to inspect the property before purchase.
This will allow you to negotiate necessary repairs, pest control, interest and taxes still owed on a property and eviction of current tenants, if necessary.
You may be able to find listings for bank owned homes in your local newspaper's real estate section.
Otherwise, it is best to contact a bank directly to find out what they have to offer.
A loan officer will discuss your options as well as what amount you will receive in loans for a new home.
New home buyers are also eligible for various tax credits.
Energy efficient renovations can also earn home owner tax credits.
Purchasing a new home can be both exciting and challenging.
But knowing your options can make this process less of struggle and will prepare you for any unexpected surprises.
Always ask the necessary questions to find out what a new home entails and to be sure you are not getting more than you bargained for.
With the highest jobless rates across the United States since the Great Depression, many families are finding it impossible to afford their homes.
Foreclosures and bank repossessed homes are at an all-time high.
This means that many new home owners are presented with low cost properties to choose from over those at market value.
However, there is much more to these homes than meets the eye.
First, a foreclosure and a bank owned home are not the same thing.
A bank owned home is one that has already gone through the foreclosure proceedings and failed to sell at a real estate auction.
The reason a house fails to sell at these auctions vary, but in most cases it is due to the asking price being higher than market value.
Not all homes that are in the foreclosure categories come at a low price.
Banks are required to get the highest dollar on these homes to help offset the balance of what is owed.
Due to the increase in these types of houses, many banks have an outside loan officer that handles all of their foreclosure accounts.
Foreclosure homes are often listed in an AS IS condition.
As a buyer, you are not allowed to see the house prior to purchase.
You will attend an auction and bid on the house with other potential buyers.
The price of a foreclosure home is often lacking additional fees that are later added on during the close of the sale.
Some of these fees include secondary mortgages the previous owners had on the house, past-due taxes, and unpaid accumulated interested on loans.
With a bank owned home you have the option to inspect the property before purchase.
This will allow you to negotiate necessary repairs, pest control, interest and taxes still owed on a property and eviction of current tenants, if necessary.
You may be able to find listings for bank owned homes in your local newspaper's real estate section.
Otherwise, it is best to contact a bank directly to find out what they have to offer.
A loan officer will discuss your options as well as what amount you will receive in loans for a new home.
New home buyers are also eligible for various tax credits.
Energy efficient renovations can also earn home owner tax credits.
Purchasing a new home can be both exciting and challenging.
But knowing your options can make this process less of struggle and will prepare you for any unexpected surprises.
Always ask the necessary questions to find out what a new home entails and to be sure you are not getting more than you bargained for.
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