1. Is now a good time to buy a foreclosure? Local markets vary based on location.  There are questions buyers should ask before making an offer on a property in foreclosure.

2. Buyers should be preapproved for a loan before they start to shop.  If a buyer is buying as a second home or investment property, they need to understand financing will be more expensive and than financing a home to live in.

3. Buyers need to be aware of unpaid liens, taxes, home equity lines, utility bills, second mortgages, etc.  These obligations could become the new buyer's responsibility when they purchase the foreclosure.  If the property goes through a foreclosure auction and becomes bank-owned, the outstanding fees could be transferred to the new owner. 

4. As a qualified borrower, can I get better bank terms?  If a buyer has a good credit score, many banks will offer them a below market loan rate.  This will be determined by the location, and how many foreclosures exist in a specific area.

5. Cost of buying a foreclosure?  Buyers with cash have the best opportunities.  If you plan on renting the property, make sure you compute your carrying costs, such as taxes, insurance, maintenance, etc.   Once you have added your expenses, add 10-15%  for future surprise incidentals.

6.  Does neighborhood choice affect foreclosure investment?  If you are looking for a good investment property, you might want to avoid neighborhoods with many foreclosures.  If newer subdivisions have foreclosures, investors might buy them due to steepest discounts, but keep in mind, they can carry the most risk for further depreciation.  Look in well established neighborhoods, where foreclosures are few.  Good schools and public transportation are important also. If you are looking in a market  where prices are still on the decline, you should take that into consideration when making an offer.

7. When does the Right of Redemption expire?  There is a 12 month period the previous owner or someone with material liens can claim the property.  They would have to pay back expenses.

Please contact me if I can be of further assistance in helping you purchase any property.