Real Stories

Couple Finds Opportunity in Foreclosed Home

April 2009

After house-hunting for two years, Andrea and Donald celebrated Valentines’ Day in 2009 by moving into their new home in Linden.

The buying process began to pick up for the two in September 2008. After having spent some time house-hunting, the couple began working with Ron, a REALTOR® they met through Andrea’s brother.

Ron explained the negotiations he would go through with sellers and the financial process involved in a purchase. He worked with the couple to help them find an appropriate price range that fit their needs. He even assisted them in finding a mortgage agent who pre-approved them for a mortgage.

Throughout their search, Andrea and Donald noticed how much more affordable homes were becoming and how much interest rates were decreasing. They noticed that sellers were becoming more accommodating. However, by January 2009, still without a new home, they were getting frustrated.

“We had seen many houses that we liked, but were outbid,” said Andrea.

Then, the couple found an opportunity in a foreclosed property.

“There were some added nuances to buying a foreclosed home,” said Andrea, “but it was worth the trouble.”

Buyers purchasing a foreclosed home can often get a good deal, but it is a more complicated process. The bank that owns the property as well as lenders tend to evaluate the financial proficiency of any and all offers, which may take some time.

Buyers in good financial standing should be prepared to fill out several financial applications. Being pre-qualified for a mortgage will give buyers bargaining power in addition to financial assurance from a lender. Before buying a foreclosed home, buyers should research the neighborhood, hire a home inspector to look for any structural or electrical issues, and find out if they are getting a good value. A REALTOR® can provide a wealth of knowledge and expertise throughout the step-by-step process of buying this type of property.

Often, there are improvements needed in the home that are not fixed by the bank before closing and become buyers’ responsibility.

“There was mold and water in our basement and we also had a problem with the furnace,” Andrea said. “There were no fire or carbon monoxide detectors in the house. We were responsible for fixing those issues.”

Andrea and Donald anticipated these issues and succeeded because they were educated by their REALTOR®.

“Ron showed us every listing he had,” Donald said. “He became like family – cheering us up when we were outbid on a house and asking us questions about ourselves. Every time we went out with him, it was an adventure.”

“Ron informed us about the buying process. After the two-year long process, we’re extremely happy with our house.”