Tips For Buying An Atlanta Foreclosure | Atlanta Real Estate Attorneys

According to a CNN article earlier this year, one in every 624 U.S. households, nearly 211,000 in total, got hit with some sort of foreclosure filing in January. This means that there are foreclosed homes available on the market for buyers. But, the truth is that purchasing a foreclosed home is different buying a home traditionally.

Foreclosure Homes Come ?As-Is?

One of the biggest challenges for buyers looking to buy a foreclosed home is that they come ?as is.? The buyer is going to be responsible for all repairs. There is often little room for negotiation. However, because foreclosed homes are typically vacant, it can mean that you can likely move in quickly. Many times foreclosed homes are purchased by first-time home buyers because they are focused on lower price ranges.

What to Do Before You Start the House Hunt

If you are looking to purchase a foreclosed home, there are a few things you should do before you officially start the house hunt. You will want to find a broker that specifically works with?distressed?properties and?foreclosures. It can also be helpful to hire a real estate attorney. The experienced attorneys at Almand & Cohen, LLC can help you navigate the sometimes confusing foreclosure process.

Here are a few things to do before you start looking:

1. Be sure you get?pre-approved?for your mortgage
2. Look at the price of comparable homes in the area where you are looking
3. Keep in mind, the sale is as-is?have money put aside to cover repairs

With a foreclosure, it?s essential for you to budget carefully. Make sure that you do not let a low price tag lure you into buying too quickly. If there are extensive repairs, you will need money to cover these expenses. If you are purchasing the home to rent it out, can you float the mortgage payments until you find a tenant?

Check Out the Neighborhood and Get an Inspection

Part of your research should be to take a good look at the neighborhood. If there is high-crime in the area, or if there are a lot of other foreclosures, you may not be able to recoup the cost of the repairs. Drive through the prospective neighborhood at a few different times during the day?especially at night.

You will also want to consider how long the home has been empty. Often, if the home has been empty for a long time, there may be a lot of damage that will be costly to repair. It?s vital to get a private inspection on any house, particularly if you are looking at buying a foreclosure. While banks typically require an inspection when you are using a mortgage to pay for the property, if you are buying a house with cash you should still get an inspection. Often home buyers will not get up-to-date inspections because they have data from previous inspections, but house conditions can change over time. Inspections can also prevent future damage?by proactively fixing problems with the house, you can save money long-term. A typical inspection in Atlanta will run $300-500.

Are you looking to buy a foreclosed property in the Atlanta area? Talk to the experienced attorneys at Almand & Cohen, LLC to find out how they can protect your investment.

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