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How To Buy HUD Foreclosures, and REO Homes
By Ida Hand, Aurora Realtor
As a Realtor specializing in HUD foreclosures in Aurora, IL I've experienced the many advantages and the few disadvantages of buying foreclosure, pre-foreclosure and REO homes.
There are certain aspects of purchasing a HUD Foreclosure home that many buyers have no idea about. For buyers properly prepared, these "distressed situations" can be an excellent opportunity.
The following are tips for bidding on and buying foreclosure homes in the Aurora, IL area:
1- Inspection: Prior to making an offer it`s extremely important to conduct a "Full" inspection. Roof, appliances,Air Conditioner,termites,mold,and structural damage need to be carefully checked. Make sure prior to inspection that the electricity is on and water is running.
Banks usually sell Aurora REO homes in "AS IS" condition, meaning once a contract is executed all repairs are your responsibility. This means your inspection is critical. Any repairs you'll need to make should be factored into what you're willing to pay.
2-Special Contracts or Riders: Some banks insist you use their contract "To Purchase" or add special riders to the contract. I strongly suggest that your attorney review these contracts prior to signing.
3- Back Taxes: I can help you check with the county in regards to back taxes owed. I can`t tell you how many times at closing there are "Taxes Owed" which isn`t included in the sales price.
4- We can negotiate for the Bank to pay for Buyers Closing Costs. Worst case scenario is the Bank will say no. In many cases, they`re willing to pay a portion of these costs. And I figure, it never hurts to ask!
5- Estimating Repair Costs: I don't like the term "Cosmetic". There are some times when cracked tile are there for a reason: such as bad grout, rotted fascia, etc. Small problems can be clues to bigger problems.
I have access to expert local Aurora, IL contractors who can give you a "Dollar Amount" on what it costs to repair the foreclosure home you`re considering. Add that to the actual budget. I like to tell my clients to budget a minimum of $5,000 towards repairs.
As a general rule, people who have been Foreclosed are often unable to properly maintain their homes. Since money is short, they allow appliances, yards, roofs, gutters, etc, to be unattended too. Remember it could take 3 to 9 months for these people to vacate their homes. They`re not putting any money into maintaining these homes, so it`s up to you to investigate thoroughly.
Before looking at buying a Foreclosure consider hiring a Realtor who specializes in dealing with the lenders who now own these homes. A Foreclosure Specialist Realtor has access to people who can look at a home objectively and tell you the actual condition. Buying a HUD foreclosure has its benefits and so does hiring a professional to be there every step of the way.
No one enjoys seeing another lose their home. However, these unfortunate situations do often provide an opportunity for families with limited funds to save substantially on a home.
Ida Hand, Century 21 Realtor, Aurora, IL specializes in helping buyers find, finance and close on money-saving pre-foreclosures, HUD foreclosures, and REO's. You deserve the help and security she can provide. Call her today at 630-803-9511. No Obligation - Just Help.
