The previous owner of a foreclosure defaulted on the loan, for various reasons, allowing the home to revert back to the lender. According to MSN Money, investing in foreclosures and cheap residential real estate is a wise decision, regardless of whether you plan to live there or use them as investments.
Locate Foreclosures
Locate foreclosures for sale in Delaware by searching listings online and to locate a Realtor in your area to help assist in locating foreclosures. A Realtor has access to Housing and Urban Development foreclosures, as well as other company's listings.
Inspecting
Visit the foreclosed homes in Delaware you are interested in purchasing. View the inside and outside of the homes and assess the damage. Since most foreclosure companies do not provide repairs, make a list of the repairs or updates needed and add them into the cost.
Financing
Contact a mortgage broker in Delaware. Review a list of brokers online at Delaware Mortgage Broker Directory. Go to local banks in Delaware and ask for information about financing foreclosures. For example, if you live in the New Castle area, consider visiting New Castle County Delaware Employees Federal Credit Union. Banks and credit unions offer in-house financing that allows them to offer loans that mortgage brokers may not be able to finance because of underwriting regulations.
Closing
Submit an offer. Since most mortgage companies in Delaware list foreclosures through outside sources, use the method required for the mortgage company to receive the offer. Include a copy of your pre-approval letter. Have the proper inspections done and purchase an insurance policy to cover the foreclosed home.
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