Are you in the market to buy low priced distressed properties? There are some things you should know about buying foreclosures in Snellville, Ga
Why Rent With An Option To Buy Is A Better Way To Go For Most Home Buyers.
Kinds of Foreclosures
Let us begin by understanding that foreclosure is a process.
The first step is called pre-foreclosure. This means that a homeowner has defaulted, and the bank has put the homeowner on notice that the delinquency may result in a foreclosure of the property. If the homeowner is not able to make up the delinquency than we can go to a short sale. At this stage the back will give the homeowner time to sell that house for a loss. Not so fast. The is the sole entity that has to approve the sale and may not accept a loss less than the current balance owed. This can result in a very lengthy process of up to many months waiting and waiting only to have the bank reject the offer. If the homeowner is able to affect a sale that is acceptable to the bank then it is better for their credit because it will only show a late payment and not a full on foreclosure. The third step is the foreclosure auction. The bank by this time has gone through the legal process and removed the homeowner from the house and is trying to sell the property to recover their loss. When you go to an auction the preferred acceptable payment is all cash or you may make a deposit, but the total payment is due withing 2-7 days. If you are unable to close that quickly you will lose your deposit. The fourth step is an REO, which stands for real estate owned. If the property does not sell at auction, the bank then repossesses the property and places it on the market for sale.
Highest and Best
You may have to make a higher bid if other foreclosures are selling fast. This means other people are buying up foreclosures quickly, and if you really want to get in on this action, you may have to start off with an offer that is close to, or at asking price. If there are multiple offers, you may have to offer higher than asking price and try to keep the contract contingencies to a minimum if you really want that foreclosure. Remember, location and amenities matter, other foreclosures may be selling quickly if they’re in a great spot.
Prepare Yourself for “As-Is” “Where-Is”
The bank will not likely fix anything wrong with the home. You will be buying the house the way you see it and they will not repair anything. They are selling it to try to make as much money back on their investment as possible. Make sure you include an inspection contingency so you can hire an inspector if you are making an offer on a foreclosure, that way you will know exactly what you are getting into if the bank accepts your offer. Most homeowners think that the final sales price represents a deal but fix up cost can quickly mount up and contractors have a habit of not being reliable.
Funding Your Foreclosure
Most buyers purchase foreclosures in Snellville, Ga with cash because of their frequently “below market” sales price. Cash is also the easiest and fastest closing, so banks often prefer cash buyers. There are a handful of banks that will provide financing for this purchase. They will require an appraisal of the property and this takes time, so if you are up against cash offers, make sure your offer is a competitive one. If the foreclosure doesn’t appraise as high as your offer, you will have to make up the difference.
Additional Costs
Buying foreclosures in Snellville, Ga may come with additional costs above and beyond the purchase price and closing costs. If the owner couldn’t make the mortgage payment, you can probably assume he or she did not pay the real estate property taxes or homeowners association fees if the foreclosure is in a community. You might also become responsible for any utility bills, home equity lines of credit, or other liens on the property. Make sure the title company takes these factors into account when preparing the title commitment.
You will also have to take into consideration the additional cost of making the necessary repairs or cleaning when you buy a foreclosure. There is no cleanup requirement when these properties are seized, and the previous owners might be a little upset about the bank foreclosing on them and take it out on the property. Repairs to the home might also increase the assessed value and raise the taxes.
When You Start Your Homeownership Journey with Rent With Option To Buy There Are 5 Reasons It Will Be Better For Most Home Buyers.
- Low move in cost. Most homes only require 1 month rent and 2 months security. You don’t have to purchase the home for up to 3 – 5 years. This leaves money in your pocket and time to improve your credit and save for strong down payment. You will also have time to shop for the best mortgage possible and buy the house you choose and are already living in.
2)The homes are in move in condition. We work with an equity buyer who will buy the house on the market and if the home needs repairs will make the necessary repairs so that when you move in the house will be in move in condition.
3)You have the option to try it before you buy it
Rent to own homes have a key component which is the option to buy the house. That means you can lease that home for up to 3-5 years and buy it during the time you are leasing. The advantage of that is you will live in the house during the time of the lease get a feel for the house and the neighborhood. If you like the house, then you will go out and get a brand-new mortgage and buy it. If you don’t like the house, then you can simply give the appropriate notice leave the home in good condition and walk away with no further obligation to buy that house.
When you buy a foreclosure home you are stuck with all the headaches that you bought in the house.
4)The homes are in move in condition and in great neighborhoods
Foreclosures tend to be random events. That means you may not be able to find a home in an area you will want to live when you are ready to buy. With rent with option homes you are going to find a home in a great area that you will want to live in. The homes are bought from the real estate markets current inventor so you will typically find a home you will want to live in and eventually own.
5) To get into a rent with option to buy home, in addition to low move in cost you don’t have to have perfect credit. Foreclosures require a lot of cash up front, if you want to finance it you will have to possess near perfect credit. Our homes rent with option to buy you don’t need perfect credit to move in. Then you will have the time to improve your credit and save for a strong down payment to buy the home you are already living in.
You can see from the above that rent to own homes provides a good value to aspiring homeowners. If you would like to find out more about rent to own homes and how this process can be a benefit to you and your family give us a call today 678-478-3861 or visit us on the web www.FreshStartHomesales.com
Call Fresh Start Home Sales at 678-337-1165 or send us a message to learn more about buying foreclosures in Snellville .
Fresh Start Home Sales
2330 Scenic Highway
# 300
Snellville, GA 30078
678-337-1165
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