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Two tips to buying foreclosed properties

Posted on Monday, January 30, 2012 at 9:10:55 AM

The abundance of foreclosed properties on the market can potentially be a wealth of opportunity for consumers looking to snag a deal. According to RealtyTrac, an online marketplace for foreclosure homes, 31 percent of all residential sales in the second quarter of 2011 were for homes in some state of foreclosure.

If a consumer is looking to buy a foreclosed property, he or she may wish to keep these two tips in mind.

1. Financing. Consumers looking to buy a foreclosed home should have their residential financing all figured out with a home loan approval already in place. It gives the potential buyer more negotiating power and a set-in-stone budget.

2. Inspections. Buying a property remotely is not ideal and comes highly unrecommended by many real estate experts. Never forgo an inspection, regardless of how much pressure there may be to close the deal.

"Short sales aside, buying a bank-owned home and a home owned by a regular seller is not that different," Will Farley, a real estate agent at Long and Foster, told Fox News. "The difference lies in the inspections because banks aren’t in the business of fixing things."

Proper residential financing and inspections can help prevent heart ache or stress from happening in the homebuying process.ADNFCR-16001052-ID-800695338-ADNFCR