Buying a foreclosed home can be a good investment.
When a homeowner fails to make mortgage payments for several months in a row, the home starts going through the foreclosure process. Buying a foreclosed home in Texas can be a smart investment for buyers or investors, because it can often be bought for much less than what it is actually worth. Buying any type of real estate, especially foreclosures, can be an involved process, so it is recommended that you hire a real estate agent to help you navigate the buying process no matter what state you live in.
Instructions
1. Determine your price range. Foreclosed homes in Texas fall in all price ranges, so decide how much you can afford and avoid looking at foreclosures out of your price range. According to RealtyTrac, the average price for a foreclosed home in Texas is around $186,000, but there are also dozens of foreclosed homes selling for over $1 million, so knowing what you can afford is crucial. Contact a mortgage lender to help you determine your ideal price range.
2. Get pre-approved for a mortgage unless you will be financing the home yourself with cash. The financing process can be more difficult with a foreclosure and most banks require any offers on its property to be accompanied with a pre-approval letter from a mortgage broker or bank, according to Realtor Magazine. In Texas, mortgage brokers and mortgage bankers differ in what types and sizes of loans they can handle, according to Texas real estate agent Nicole Peel. It is important to research both and choose the one that will best be able to handle your loan.
3. Search for Texas foreclosures through online databases. Real estate databases like Texasforeclosure.biz, Specialized Realty Group, Inc. and TexasForeclosuresInfo (see Resources) specialize in Texas foreclosures and offer regularly updated lists of foreclosed homes by counties and cities. Other search criteria like price and size can also be applied to the searches to help narrow down the choices.
4. Talk to a Texas real estate agent. As mentioned before, buying foreclosed homes can be a difficult process, so it is advisable to hire a reputable real estate agent in your area. The agent also has access to the multiple-listing system, which may include some foreclosed homes not featured online. Over 200 real estate agents in Texas work as specialized foreclosure agents, according to foreclosure.com, and can be an excellent source for information on foreclosures and the foreclosure process. Texas companies like Specialized Realty Group deal only in foreclosures and can provide up-to-date foreclosure listings and foreclosure advice.
Tags: real estate, estate agent, real estate agent, foreclosed home, foreclosed homes, price range, Buying foreclosed
