Tag Archives: foreclosure

Safeguarding Your Investment in Foreclosure Homes

February 9, 2018   Home Mortgage

Many people are jumping in the bandwagon of buying foreclosure homes without a safety net and they end up with a burdensome mortgage on a run down property. The best way to secure your investment in distressed homes is to arm yourself with good research and timely information to make the right choices.

There are indeed some important choices to be made when talking about buying foreclosure homes. You should start with the choice of payment method, which can either be in cash or through a home loan. Whatever method will be used, the buyer should establish a budget and stick to it. They should also know all the expenses involved in purchasing a foreclosure because it is never just limited to the purchase cost.

Incidental Costs of Buying Foreclosure Homes

Remember that distressed properties are all pre-owned and sold as is. There is also a real possibility that the former owners have not been able to take good care of the property. Your budget should include the amount to be spent repairing the home and nursing it back to livability. Home inspection is a definite expense because this is the only way you can assess the true state of the home as far as damages and wear and tear is concerned.

There is also the issue of the title search, which is another potential expense. If you purchase bank-owned foreclosures then this should not be a problem since banks will typically offer a title insurance. Otherwise you need to enlist the help of a real estate agent or broker or even a lawyer to conduct a title search on your behalf. This exercise will reveal all the back taxes, liens and other encumbrances which may still be in effect on the foreclosure homes you are considering.

If you are intent on making this investment, you have to be willing to conduct your research and sharpen your negotiation skills to arrive at the best deal possible.

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FNMA Foreclosure Listings is Your Guide to Affordable Housing

January 31, 2018   Home Mortgage

Anyone with a clean credit slate and a livelihood can check out FNMA foreclosure listings and become home owners. This American dream is available to everybody through FNMA or Fannie Mae foreclosures but it particularly favors first time buyers who plan to reside in the property.

What is the Federal National Mortgage Association?

The FNMA is a government-backed business entity operating in the secondary mortgage market. The company’s mission is to enable home loan providers more capital to keep offering mortgages to the general public. What Fannie Mae does is to purchase closed mortgages and offer them back through foreclosure homes. Buyers can check with their real estate agent or broker for homes being offered through Fannie Mae loans. They can also consult online FNMA foreclosure listings for leads on cheap homes.

Anyone wanting to purchase Fannie Mae foreclosed properties should first learn how this process works. Fannie Mae only deals with agents or brokers which they certified. If you consult any listing of Fannie Mae homes it will have the contact information of the property manager to deal with. Before making contact be sure you have been pre-approved by any bank or lending company. A pre-approval certification is a requirement when making an offer for Fannie Mae homes. You have to make sure that you plan to make the home your primary residence as Fannie Mae gives priority to owner-occupiers.

There are other government grants and assistance programs you can apply for to further lower down you financial exposure. These grants can be applied to your down payment or your closing costs. Fannie Mae also permits buyers to use donations or a cash gift as down payment for the home. With all these advantages, buyers should not fail to check out FNMA foreclosure listings when considering distressed properties as they are the lowest priced homes you can ever find in the market today.

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