A lot of buyers ask me about the purchase process for foreclosed homes. It is perceived as a way to get a great deal on a real estate purchase. There are some good deals to be had but the process is cumbersome and very very risky. As a real estate investor, I have made several investments in foreclosed homes. I purchased The one below at 103 14Th AVE in BELMAR about 5 years ago at the Monmouth County Sheriff’s sale. This is a common place to purchase bankruptcy homes but not easy to navigate. A couple of things to know if you are thinking about taking on this task..
>A foreclosure list is published on the website with weekly auction inventory
>Most of the homes on the list don’t actually make it to the auction block, the leans are met or the auction date gets pushed. You can show up multiple times to get a home and it never gets auctioned.
>Even if they do make the agenda, in most cases the bank will buy the note back so the property does not become publicly available.
>If the property does make the auction block, you have to be prepared to bid in cash and leave a cash deposit. This means you have to show up to the auction with a cashier or bank check. The deposit required is 30% and is very difficult to get that money refunded.
>You are purchasing the house without access to the inside or a title search, so you can be buying a real problem. Basically, you are making a purchase sight unseen having only been able to drive by the outside. In many cases, people reside in the home so you take on the risk of having someone not leave after the purchase is made(we have had that happen on another property.)
>In many cases, investors do this full time so you are up against very savvy investors that spend their days scouting and researching these homes.
All and all, this ended up being a great purchase just one block back from the beach in Belmar. We renovated it and had steady tenants for 5 years and sold it with no effort for double the purchase price.
If you are interested in learning more about the process I am always happy to help. I am certainly no expert in this area but have done enough to know the basics.
Call or DM me anytime. (908)720-1877
“Your Jersey Shore Realtor”