A government seized real estate property is that property which has been government repossessed because of failure of mortgage repayment by the owners.
A real estate property or home may also be government seized due to tax evasion or illegal activities. Each year, properties by the thousands are government seized.
Because of there is continuous arrival of new government seized real estate properties as well as the huge amount of time and money required to market and maintain them, the government try to recover even just a few of their money by performing a public government seized real estate property auctions.
In fact, government properties and can be bought for as high as 90 percent off the property’s market value.
Here are tips you can use when buying government seized real estate:
(1) Take the time to educate yourself regarding the different kinds of real estate properties as well as the process of foreclosure.
You can obtain huge savings during the “pre-foreclosure stage”, whereby the home owner can prevent a foreclosure at the same time the lender is able to save money and time going through the foreclosure process.
In which case the property owner (seller) can “get out” from his mortgage and not having to destroy his credit rating, the government (lender) saves time and cost on foreclosure expenses and you (buyer) can obtain a “below-market price” on a real estate property or home.
(2) Acquire financing early, because this guarantees that you are in a good financial position so to buy the property, therefore you are in a strong situation to negotiate.
Another reason for this is that some lenders do not finance government seized properties. So having an approved financing in hand makes your negotiations easier, and even possible for you to heal the default of non-payment by taking over the present loan in order to reduce processing fees.
(3) Consider having a “real estate” property agent as your “buyer’s representative”. Whereby the buyer’s representative is concerned with your interests and has the obligation of finding the appropriate property for you as well as negotiating for you the best deal there is.
Therefore you should find an agent having vast experience with foreclosure transaction, knowledge of regional, state and local laws to make sure that you are in excellent hands.
(4) It is important that you research first, because when it comes to buying government seized properties, timing is really everything!
(5) You must give out a realistic offer. Lenders usually will not just give real estate properties away, because the industry continues to climb higher.
Furthermore, financially distressed home owners may be hard to transact with, especially in the early foreclosure process.
As a buyer, if you are well educated, who can determine the amount owed on such a property as well as its market value and therefore you can come up usually, with a very realistic offer.
Buying government seized real estate properties is indeed an excellent way so as to save dollars on your vacation house, next home or as an investment property.
It can be more risky compared to purchasing traditional properties. However, along with that certain risk you take also comes the reward of huge potential savings. Just be wise, be well equipped in terms of knowledge.