Buying A Foreclosure in MN?
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: Pros and Cons
What is a foreclosed property? A foreclosure, often referred to as an REO, corporate asset, bank-owned property or lender-owned property, is a home that’s been through the foreclosure process and is now owned outright by the bank. You may want to purchase a foreclosure based on the price advantage.
Often times foreclosures are priced less than other properties in the market area. Like a traditional sale, response times are usually less than a week and closings can happen promptly. There are challenges when purchasing a foreclosed property.
It is encouraged to have an inspection contingency on your offer Unlike a traditional sale, a lender or bank may not allow price concessions, changes in the offer or renegotiations.
What to know about Buying A Foreclosure in MN
Most offers will be at asking price With any purchase, get informed by completing homebuyer education for additional information connect with the Homeownership Center Work with a licensed Realtor who’s experienced in foreclosed properties there’s no need to pay for a list of foreclosed properties as the majority of foreclosed properties are listed and marketed through traditional systems foreclosed properties often sell quickly, so it’s important for buyers to be pre-approved by a lender before submitting an offer.
When you are looking at homes keep in mind their condition, if major home repairs are needed the home may not be the deal you expected. Also your lender may not approve the purchase.
Tips for Buying A Foreclosure in MN
Foreclosed properties are already considered to be a value so most lenders expect buyers to offer close to the listed price also remember to include the contingency that allows the home to be inspected in addition, be sure to budget for repairs, as many foreclosures will need at least some kind of work.
Once you submit an offer you should hear back in a few days As with traditional homes, there may be more than one offer the lender is considering.
Once your offer is accepted, schedule the professional home inspection if the repairs are too great and not affordable, this is the time a buyer can cancel their offer.
All buyers are strongly encouraged to purchase Title Insurance. This is especially important for foreclosed properties to protect your ownership of the home Clearly, there are advantages and challenges when purchasing a foreclosure.
What to know about Buying A Foreclosure in MN
If you’re unsure about any aspect to the home buying process or about the advantages and challenges to purchasing a foreclosure There is a network of nonprofit Homeownership Advisers that can assist with any questions you may have. Visit the Homeownership Center at H O C M N dot org for more info.
Read More: VA Foreclosed REO Properties
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