How To Make an Offer on a Foreclosed Condo
Foreclosed properties are generally empty, and most lenders want to make a deal on these types of properties quickly. Make sure that you know what you are getting into before you make an offer on a foreclosed condo. Researching the property's title thoroughly beforehand can keep you out of financial hot water if you go ahead with the purchase.
- Apply for a mortgage. You will be able to make a better and more competitive offer if you already have financing in place for the condo you decide to purchase. Shop around and make sure you get the best interest rate possible.
- Locate a foreclosed condominium that interests you. Good sources for this type of information are newspapers or your county's clerk of court office since foreclosures are a matter of public record. You can also try contacting mortgage lenders, but this may be more time consuming.
- Research any properties that you find interesting. Especially look for items such as liens or judgments against the title. You want a clean title that will not cause you problems as the new owner if you decide to purchase the condo. A real estate agent or real estate attorney may be able to help cut down the leg work on this type of research, but make sure they are experienced with foreclosures.
- Contact the bank or mortgage company that owns the condo. Make an offer in line with what you are willing to pay and negotiate if possible. If the property is up for auction, the bank or mortgage company may not be open to offers, although some may make exceptions for someone who already has financing in place.
- Reply to any counter-offers, if applicable, and only offer what you are able to pay with your available financing. Most lenders want to sell foreclosed properties as soon as possible.