Considering pre-foreclosure real estate (homes or condos) in Virginia Beach, Chesapeake, Norfolk, Suffolk, or Hampton Roads? Maybe real estate near the oceanfront is in your near plans.
Pre-foreclosed homes and condos offer potential real estate bargains if all the cards come together.
At this point in time, the home owner is in a state of “limbo” where some specific actions have to take place.
What is pre-foreclosure and how does it affect those searching for Virginia Beach homes or condos?
Realtytrac defines pre-foreclosure as:
“Buying homes or condos in pre-foreclosure involves approaching the borrower/owner and
offering to buy the property outright. The borrower/owner can walk away with something to show for any equity in the property and avoid a bad mark on his or her credit history. The buyer has time to research the title and condition of the property and can realize discounts of 20-40 percent below market value”
As a potential home or condo buyer you have certain “wickets” that need to be accomplished to find and close on the right real estate pre-foreclosure. Think about the following items:
- Drive by the property; check out the home or condo, and more importantly the neighborhood and
schools. View the real estate and gauge its condition. Is Virginia Beach and the neighborhood somewhere you want to live or have a rental home?
- Check with your Virginia Beach REALTOR® to ensure the home or condo is still in pre-foreclosure status. Home owners have a certain grace period (months) to clear their back mortgage payments.
- Let your REALTOR® make the necessary inquiries to obtain this information. You do not want to waste your time on a property that may be reinstated to the owner.
- Let your REALTOR® do the “comparables” commonly called “comps” to make sure the real estate in question is a bargain. Your agent can provide additional value during this process.
- Make sure you are prepared to buy real estate. Have you checked your credit, obtained
financing (pre-approval), and met with your REALTOR® (discussed above). Know
your wants and needs in a home or condo.
- Let your REALTOR® make initial contact with the Virginia Beach home or condo owner. This can be a sensitive issue with the current home owner. The contact initially may be by mail prior to in person.
- Once a pre-foreclosure owner has agreed to a purchase you will want to tour the home or condo. Be aware of problems as maintenance may have not occurred during their ownership
and financial struggle. Just understand that you may have to be a handyman and visit home depot frequently. This can be ok if you obtained a “good deal” on the purchase price.
- Consult with your REALTOR® to write up the home or condo purchase agreement. The contract may be contingent on home inspection and no defects in title.
If everything is aligned as detailed above you should have minimal problems closing.
