FREE Foreclosure List in a City of YOUR Choice
NEW FORECLOSURE LISTS have just been released!! Get yours today. FORECLOSURES are still being sold despite media reports! Do not be fooled and let these great opportunities pass you by! Million dollar investors are taking advantage of these great deals everyday and so should you! With foreclosure home inventories on the decline, now is the time to capitalize on these tremendous values! If you are looking to save money when purchasing a home than foreclosures are a great option! Even though foreclosed properties are less expensive there are several things that can cost you a great deal of money down the long run. Below is a list of
5 mistakes when purchasing foreclosures.
1. Taxes
Do not over pay on transfer taxes on government foreclosure purchases. Most government foreclosures are exempt from paying transfer taxes. Be sure to check the homestead status of the property; If it is believed that a property is vacant than the homestead can be taken off potentially costing you thousands of extra dollars in property taxes for the first year that you own it.
2. Over Bidding
This is a constant mistake made by those who have not done their homework. Overbidding on a property can cause your lender to require you to cover the difference in addition to the down payment. This is when it is important to have the right professional Realtor to assist you, and provide you with the tools to keep you from paying too much.
3. Not Getting a Final Water Read
When purchasing foreclosure properties it is absolutely essential to get a final water read and not waive any rights to who is responsible for paying any previous bills. It is not out of the ordinary to have a foreclosed property with a water bill of over $1000, and in some extreme situations as much as $8000.
4. Not Getting the Most Out of a Home Inspection
In addition to telling you what repairs need to be done, a home inspection can greatly influence any repair escrow (a reserve account set aside by the seller which covers the cost of certain agreed upon repairs). Your inspector can help you by listing the things that you would like to have fixed once you buy the home (It is best to make out a list before he arrives). This list can help to increase the escrow amount the seller has offered for repairs.
5. Not maximizing your investment
Not understanding how to make money buying a foreclosure is a missed opportunity! The Federal Government will allow you to include most planned repairs into the mortgage amount, so ask for these repairs to be included in the loan. This leaves your money where it belongs, in your pocket.
How to take advantage of these tremendous real estate deals in Michigan…
Get
YOUR FREE FORECLOSURE LIST by completing this form and be assured that your information will not be shared; your privacy is very important to us.
(
*indicates a required field)
