Although buying a foreclosed house is about the same process as buying a regular home, there are a few key differences to be aware of if you are considering it. The Jeremy Ganse Team describes the process below.
What Is A Foreclosed Home?
A foreclosed home is a building that has been repossessed by the bank after the borrower failed to keep up with the mortgage payments. When buyers take out a mortgage loan, the home is the collateral for that loan. If the homeowners default on payments, the bank reclaims it. The bank will put the home in foreclosure and sell it in order to recoup as much of the loan balance as possible.
How Do You Buy a Foreclosed Home?
Buying a foreclosed home is a very similar process to buying any other home, but it’s important to work with a real estate agent who has experience on this topic, as there are a few things you want to be aware of throughout the process.
Just like a normal home for sale, you are able to walk-through a foreclosed home and place an offer with the bank after the showing. If the bank accepts the offer, be sure to have the home professionally inspected. This is especially important if the home has been sitting vacant for a while, as any number of damages may have occurred. If the inspection goes well, you can proceed with the purchase without worry. If you need a mortgage to purchase the home, the mortgage application process with your bank will be the same as with a traditional sale.
The key differences when buying a foreclosed home are:
- Price: Expect to pay what the bank is asking. If they are asking a below-market price, chances are that they will not negotiate.
- Repairs: Expect to make any repairs yourself, as the bank will sell the house in “as-is” condition.
- Speed: Expect it to be slow. Foreclosure sales tend to take longer than traditional sales.
Benefits To Buying a Foreclosed Home
Buying a foreclosure can be a great way to buy a home that you couldn’t otherwise afford. Because foreclosures are usually offered at below-market prices, buyers can find a quality house in a wonderful neighborhood for far less than the average home price in the neighborhood. As the buyer, you’re free to flip the house for profit or move in yourself. With a little work, a few years down the line, a foreclosed home could sell for far more than the original price.
Foreclosed Homes in Lancaster County
Lancaster County offers a variety of foreclosed homes in many diverse areas. From the city to the countryside, the Jeremy Ganse Team is more than happy to help you find a home perfect for your needs and within your price range.
If you are interested in learning more about foreclosed houses for sale in Lancaster, PA, reach out to the Jeremy Ganse Team. Their experienced real estate agents would be happy to help you explore the many benefits of buying a foreclosed home. Contact their office at (717) 208-4240 or by visiting jeremyganse.com.
Jeremy Ganse, Realtor
RE/MAX SmartHub Realty
930 Red Rose Court
Lancaster, PA 17601
717-208-4240 (Cell)
717-208-4444 (Office)
877-271-5520 (Toll free)
