Bank Foreclosure Homes For Sale Near Me in PA

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What is a Foreclosure?

Bank foreclosure homes for sale near me happen when a lender takes a property from an owner who has defaulted on their mortgage and has fallen behind on payments. Lenders, in turn, will try to recoup as much of their investment as possible by selling a foreclosed home for slightly less than it might be worth.

In the right situation you are getting something below market value because the bank is motivated to get the home sold. Also, the bank tends to negotiate more than a typical seller would.

5 Steps to Buying a Foreclosed Home

Here are some tips to prepare you before buying a foreclosed home:

1. Find an agent specializing in foreclosures.

2. Get a preapproval letter.

3. Look at comps before making an offer.

4. Bid higher if other foreclosures are selling fast.

5. Be prepared to buy a foreclosure in “as-is” condition.

Buying a Foreclosed Home: Pros and Cons

Buying a foreclosed home is a personal decision and it depends on a variety of factors, including your risk tolerance, the property’s potential reward, financing and your ability to move quickly. You could reap big savings if the foreclosure is priced right, so don’t discount this type of listing in your home search.

Pros

Good value – Scoring a low price is the biggest attraction for foreclosure shoppers. Especially in down markets, foreclosed properties can sell for a discount.
Strong returns – If you find a well-priced foreclosure and perform repairs cost-effectively, your reward is a property worth more than you paid.

Cons

Extensive repairs – Foreclosed properties often need work. Struggling homeowners might ignore routine maintenance, so the repair bills can be expensive.
Complicated process – Compared to a typical transaction, buying a distressed property requires more specialized knowledge. Short sales are notoriously time-consuming, while finding pre-foreclosure sellers requires legwork on the buyer’s part.
Cash requirements – If you buy at auction, you’ll probably need to pay cash for the property.
Stiff competition – Foreclosures typically are the purview of professional investors, and competing against them isn’t always easy.