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What To Look For When Buying A Foreclosure

INTRO

In today’s real estate marketing, foreclosures can be a great deal. However there are things that you need to watch for. This report will educate you on what to look for.

REPORT

Foreclosures can be a great deal if you a looking for a home. Many are below market value, and can really save you some money. However they can also turn into a nightmare if you don’t know what you are looking for. Many foreclosures are unfortunately not in the best conditions and if you don’t know what you are looking for there could be a very unpleasant surprise. Here are some important things to consider before you purchase a foreclosure.

Work With A Professional– It is important work with someone who knows foreclosures and not go at it alone. As you’ll see in this report there will be many things you want to look for, and working with a professional who has your best interests in mind will only make sure you make the right decision. We have experience and the relationships to make sure you make the most informed decision possible.

Get A Full Inspection– With most foreclosed properties being sold “as is”, is it vital you get a professional inspection before you purchase one. When someone realizes they are about to lose their home to foreclosure, it’s not uncommon for them to stop caring about the home. So if something breaks or malfunctions they are not going to fix it. Don’t be surprised if the owner sells items from the home like appliances, cabinets, etc. Also if you are dealing with a really bitter owner they might intentionally damage the house.

Non-Owner Occupied Homes– If the owner is being foreclosed on, that doesn’t mean they live at that property. There are often times that the home is rented out or there might even be squatters. Often times if you purchase the foreclosure you are responsible evicting the occupants. This can sometimes turn messy where the occupants don’t want to leave and it can turn into a legal battle. If you aren’t familiar with the eviction process you should hire a lawyer. If this is too much for you, then make sure the foreclosure you are looking at is not a non-owner occupied home.

Physical Condition Of Property– Just because a foreclosed home does have some damage doesn’t mean it’s not a good deal. Because foreclosed homes are often times below market value, investing in the improvements can bring the home back to life and still be a great deal. That’s why is so important to get a professional inspection to know exactly what you have in front of you. Once you know what needs are to be improved you then can calculate whether or not the asking price is reasonable considering the possible repair expenses. This way, you will not find yourself paying more than what the property is worth.

Secondary Liens and Claims– When purchasing a foreclosed property it is very important to check for any adverse claims and liens on the property. Especially for homes that are in pre-foreclosure. Sometimes, an owner fails to make full disclosure and you could end up with creditors on your back. Be sure to verify the title or deed and check it for encumbrances. You don’t want to be stuck paying for them.

Get Your “Right” Price– Just because a property is a foreclosure and the home is below marketing value doesn’t means the price is set in stone. Don’t be afraid to negotiate, if you think the asking price is too high then put a bid in for what you think that property is worth to you. Also if you are looking to purchase a foreclosure in an auction don’t get caught up in emotion or competitive bidding. Set a price in your head and don’t go over it.

What Is The Real Total Price– Keep in mind the total price of a foreclosed property is more then what the asking price is. As you saw in this report there are many factors to watch out for. Make sure all liens, claims, back taxes are accounted for. Get a full inspection and see what if anything needs to be repaired. Add all that to the final price and then at point if everything makes sense financially then you know if you’ve got a great deal or not.

Foreclosures can be a great opportunity for anyone from a 1st time home buyer to an experienced investor; you just have to know what you are looking for. An uneducated buyer can get trapped in something they never saw coming. If you have any questions please contact us, we’ll be more then happy to help answer any questions and help you make a wise decision if you are going to purchase a foreclosed property.
What To Look For When Buying A Foreclosure

INTRO

In today’s real estate marketing, foreclosures can be a great deal. However there are things that you need to watch for. This report will educate you on what to look for.

REPORT

Foreclosures can be a great deal if you a looking for a home. Many are below market value, and can really save you some money. However they can also turn into a nightmare if you don’t know what you are looking for. Many foreclosures are unfortunately not in the best conditions and if you don’t know what you are looking for there could be a very unpleasant surprise. Here are some important things to consider before you purchase a foreclosure.

Work With A Professional– It is important work with someone who knows foreclosures and not go at it alone. As you’ll see in this report there will be many things you want to look for, and working with a professional who has your best interests in mind will only make sure you make the right decision. We have experience and the relationships to make sure you make the most informed decision possible.

Get A Full Inspection– With most foreclosed properties being sold “as is”, is it vital you get a professional inspection before you purchase one. When someone realizes they are about to lose their home to foreclosure, it’s not uncommon for them to stop caring about the home. So if something breaks or malfunctions they are not going to fix it. Don’t be surprised if the owner sells items from the home like appliances, cabinets, etc. Also if you are dealing with a really bitter owner they might intentionally damage the house.

Non-Owner Occupied Homes– If the owner is being foreclosed on, that doesn’t mean they live at that property. There are often times that the home is rented out or there might even be squatters. Often times if you purchase the foreclosure you are responsible evicting the occupants. This can sometimes turn messy where the occupants don’t want to leave and it can turn into a legal battle. If you aren’t familiar with the eviction process you should hire a lawyer. If this is too much for you, then make sure the foreclosure you are looking at is not a non-owner occupied home.

Physical Condition Of Property– Just because a foreclosed home does have some damage doesn’t mean it’s not a good deal. Because foreclosed homes are often times below market value, investing in the improvements can bring the home back to life and still be a great deal. That’s why is so important to get a professional inspection to know exactly what you have in front of you. Once you know what needs are to be improved you then can calculate whether or not the asking price is reasonable considering the possible repair expenses. This way, you will not find yourself paying more than what the property is worth.

Secondary Liens and Claims– When purchasing a foreclosed property it is very important to check for any adverse claims and liens on the property. Especially for homes that are in pre-foreclosure. Sometimes, an owner fails to make full disclosure and you could end up with creditors on your back. Be sure to verify the title or deed and check it for encumbrances. You don’t want to be stuck paying for them.

Get Your “Right” Price– Just because a property is a foreclosure and the home is below marketing value doesn’t means the price is set in stone. Don’t be afraid to negotiate, if you think the asking price is too high then put a bid in for what you think that property is worth to you. Also if you are looking to purchase a foreclosure in an auction don’t get caught up in emotion or competitive bidding. Set a price in your head and don’t go over it.

What Is The Real Total Price– Keep in mind the total price of a foreclosed property is more then what the asking price is. As you saw in this report there are many factors to watch out for. Make sure all liens, claims, back taxes are accounted for. Get a full inspection and see what if anything needs to be repaired. Add all that to the final price and then at point if everything makes sense financially then you know if you’ve got a great deal or not.

Foreclosures can be a great opportunity for anyone from a 1st time home buyer to an experienced investor; you just have to know what you are looking for. An uneducated buyer can get trapped in something they never saw coming. If you have any questions please contact us, we’ll be more then happy to help answer any questions and help you make a wise decision if you are going to purchase a foreclosed property.


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Debi CampbellDebi Campbell
17:05 13 Feb 22
John McCoy and his staff are just outstanding! Their efficiency and ability to respond quickly to any of my questions and needs is what made the... difference in me getting my house so quickly. It only took 3 weeks because of their ability to expedite m paper work quickly to those that needed it, along with my clean credit! Thank you so much for all your hard work! Each one of you!read more
Bobbie-Jo TorresBobbie-Jo Torres
19:49 07 Feb 22
Very quick and helpful. They made everything smooth and easy and in terms that I could understand! Highly recommend!!
daniel villarrealdaniel villarreal
04:19 03 Oct 21
John The Mortgage Man went that extra mile to make sure I received the best mortgage on our new home. Very satisfied. Thank You John.
Danny OchoaDanny Ochoa
17:39 16 Jan 21
John was the one who took a chance on me and my wife . Thank you so much for changing our lives and putting us in our new home . If anyone out there... needs someone to help them make there dreams come true reach out to John and the professionals mbn financial.trust me they won’t let you downread more
Herb FarleyHerb Farley
23:05 06 Jan 21
What an amazing experience! John and his team were extremely responsive and easy to work with! They made the loan process easy and never hesitated... to answer our questions. I would recommend John the Mortgage Man to anyone looking for a loan!read more
Mason ShirleyMason Shirley
18:19 04 Jan 21
Working with John McCoy was very easy and convenient. He walked us through the entire loan process with excellent communication and knowledge. We... were in a time crunch to purchase a home before the end of the year, and John worked fast to make it happen. Would highly recommend!read more
Debbie PowellDebbie Powell
05:38 21 Dec 20
John has helped me purchase 2 houses! John is easy to talk to and makes you feel like family. He is the best person you could have to help you in... this process! John will make it happen! Thank goodness he came highly recommended to me. John is truly a hero!read more
Vivian SimsVivian Sims
19:38 20 Dec 20
John McCoy has been our "mortgage man" on two purchases. Both went smoothly without a complication. The money and timeline were exactly what he... represented. I have recommended him to many looking for a mortgage. If you are looking for An honest, smooth mortgage progress, call "Jo John, the Mortgage Man". Way to go "Mortgage Man"!read more
Amando CanalesAmando Canales
20:21 18 Dec 20
John The Mortgage was a most professional experience my wife and I had a pleasant experience and were most satisfied with his service his can do... attitude was greatly appreciated.read more
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11:17 30 May 19
John and his team worked diligently to make the process as easy as possible. They kept me informed and sent me step by step what they were doing so I... always knew where we were in the process. I had a very low credit score and they still made it happen! Thanks John, Troy, Allan and the whole team.read more
Rich and Bekah RobertsRich and Bekah Roberts
17:43 24 May 19
John and his team are excellent at what they do. Very friendly and helpful, yet also down to earth and realistic about your ability to attain such... and such mortgage. John will let you know if your "dreams" are a match with the reality of your financial situation. John wants you in a mortgage, but he wants you in one you can afford comfortably. I had numerous questions throughout process, and John gladly answered each and every one. I am very grateful my wife and I chose John, and would do so again if/when we have other mortgage needs. If you're ready to buy a home, you wont be disappointed with John McCoy!read more
Jeremy DeanJeremy Dean
06:16 07 Mar 19
John the Mortgage Man worked to get me and my wife into our first home this year! We had some issues with low funds, high debt and bad credit, but... John helped us to determine how much we needed to save up to get in the home we wanted. Once we got there John was able to hook us up with a lender and get us a good deal on a loan. We closed in just over two weeks from the time we found a house that we wanted! John always made us feel at ease and answered any questions we had. Very knowledgeable, very responsive and very kind! Thank you John for everything! Highly recommend!!!read more
John McCoyJohn McCoy
15:12 19 Feb 19
John made getting our loan processed very efficient and worry free. He will do the same for you!
CJCJ
19:47 20 Oct 18
12 days from application to closing, now that's fast! Great overall service, everything John said he would do, he did it. My clients were thrilled.
Frank J RosatiFrank J Rosati
19:15 20 Oct 18
John made everything easy for the purchase. He had everything covered (all the associated costs, paperwork) that I needed to close. It was a pleasure... to work with him again (this is my second time working with John) and I would highly recommend him to anyone looking to finance a home.read more
debbie powelldebbie powell
19:05 19 Aug 18
John goes out of the way for you to make sure you are informed, kept up to date, and always professional. Definitely goes the extra mile to help!... Everything is done in a timely manner. Thanks so much John! This is my second mortgage through John McCoy and team.read more
Shawn LockettShawn Lockett
21:22 23 Mar 18
This guy is a wiz!!! He knows a ton about this business and how to get things done!!! Be up front, honest, and ask him your concerns and he will be... straight with you in return and get you in the house of your dreams... He was able to take us start to finish in three weeks time!!! Awesome awesome experience!!! P.S. He will only call you with news—it’s how you interpret it is up to you... Give John a call, you won’t regret it!read more
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John McCoy NMLS #308360
NEXA Mortgage, LLC NMLS# 1660690
AZMB 0944059

John The Mortgage Man
NEXA Mortgage, LLC
3100 W. Ray Road, Suite 201, Office 209
Chandler, AZ 85226
(361) 510-1420johnthemortgageman@hotmail.com