What is a Foreclosure?

It is a process where the lenders have to seize a property as collateral when the previous homeowner failed to make mortgage payments.

Why do people buy foreclosure?

Some buyers look to foreclosure hoping to get the best possible deal which is the potential savings they can get compared to buying similar non distressed property.

Purchasing it can be more complicated than an ordinary real estate deal. Being unprepared can cost you greatly.

Here are the things to know if you are planning to buy a foreclosure.

1. Get some help from the professionals

Getting a Realtor can be one of the best decisions you can make when shopping for a foreclosure. Professional guidance can make a big difference. A realtor who has a background in buying and selling these types of properties in your target local market will make the process smoother than when you do it alone.

Getting some legal advice from a real estate attorney to understand your state's foreclosure laws and regulations may be needed too.

2. Know your stuff.

It is vital that you know what exactly you are doing. Know how much your budget is, where you want to buy and study the process.  Be prepared to know and do the step by step process of buying a foreclosure.

3. Be prepared.

Get ready to secure your financing early, get preapproved, ask your agent to notify you of the listings within your target area that matches your criteria. Study and know the market, check the recent sales and active properties. Know the risks and be ready for them.

By doing these, you will have a leverage in what you do. You can have more bargaining power and credibility that you know what you do and what you want.

4. Look beyond the present.

Are you prepared for the long haul of this purchase? Do you have more than your plan A in case some things won't go your way?

Having a long-term perspective can help you avoid financial repercussions.

Foreclosure shopping may not be for everyone, but for those who take time to learn it, it can be a great deal.

If you are looking to buy a home in Anchorage, call or text 907 570-6757 or 907-720-4663 so we can help.

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