What To Look For When Buying A Foreclosure

In today’s real estate market there are a large amount of investors who are buying Orange County
foreclosures because, they offer real estate investors and first time home buyers great deals. Before
purchasing a foreclosure in Orange County or another part of California, there are certain things that
every home buyer should look for to insure that they will get the most from their money.

Inspect the Neighborhood

It doesn’t matter if you plan on purchasing a foreclosure home for your primary residence or as an
investment property, you should visit the neighborhood where the home is located to inspect the
neighborhood and see what the area has to offer.

If the other homes in that neighborhood are run down and in poor condition, it may be difficult for you
to ultimately sell your foreclosure home, once you fix it up. You may also have a difficult time renting
your foreclosure home if the area doesn’t have much to offer renters like: good schools, shopping or
employment so it’s best to always think about location, location, location before you invest your
hard earned money and time.

Home Condition

The home may be a steal on paper but what type of condition is it in? Have the house inspected
thoroughly before you invest a dime because, you could be surprised to learn that the home has
problems like black mold or other repairs that would eat up your profits if you wanted to fix it up and re-
sell it.

Besides looking in the obvious areas for signs of water damage or repairs that will need to be made, you
should look in unconventional areas like the closets of a home because, you will easily be able to spot
water damage and get a good idea of what repairs really need to be made even though the previous
homeowner may have tried to cover them up.

The goal that every foreclosure home buyer should have is to purchase a home that may be in shabby
condition but very sound structurally and won’t take a major investment of time or money to get move
in ready.

Research the Title

Never purchase a foreclosure home without first doing a title search because, investigating the title
could help you to find out that the home has a second or third mortgage on it plus other liens that you
didn’t know about. If you do find that the home has some “excess baggage” you will need to resolve
these issues before you can move in and take possession.

Look At the Size and Scope

Last of all, but most important, before purchasing a foreclosure home you should add up how much
money it’s going to take to get the home ready for you to move in, rent it or flip it. Many people who
purchase foreclosures don’t think about all of the cost involved and become trapped in a money pit that they ultimately can’t afford so it’s best to add up the costs of the project in the very beginning and ask yourself if you can do it alone or should you consider taking on a partner for the foreclosure home that you’re considering buying.