How Do You Buy a Foreclosure Property?


Quick Answer

Purchase a foreclosure property by searching for foreclosure properties, obtaining a property history report and list of comparable sales, and using this information to write a competitive offer. According to About.com, additional steps to take include analyzing the properties previously sold by the listing agent, asking about the number of offers received for the property, requesting a short inspection period, and offering to split the fees with the listing bank.

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Full Answer

Getting financing before looking for foreclosures is important because these properties go quickly and there is usually no time to secure financing after finding a good deal, according to Bankrate. Proof of funds, either as cash in a bank account or as a mortgage preapproval letter, is required to make an offer on a foreclosed property. Steer clear of asking for repairs when writing an offer, since foreclosure properties are sold "as-is." Look at recent comparable sales, or comps, of foreclosures in the same area to see if it is reasonable to offer a lower price than what the bank is asking. Making an offer that is unreasonably low just to see if the bank will agree risks losing the property to someone who made a higher offer the first time, and sometimes foreclosures that are priced competitively sell for more than the asking price, according to About.com.

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