After the housing market skyrocketed beyond a maintainable level, it fell to a new low. One of the most noticeable consequences is the incredible number of foreclosures now on the market. But if you’re thinking of getting a low mortgage payment by becoming the owner of a recently foreclosed home, you better know what you’re getting into.
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“Foreclosure properties are great opportunities to get into a nice home at a great price,” says Melanie Levine, owner of Mellex Title, Inc. “You’ve just got to know what you’re doing and surround yourself with people you can trust.” Who should you include in your circle of foreclosure trustees and why? You’re about to find out.
Trustee 1: Inspector
If at all possible, you should have a professional inspector check out your potential new home. While it’s always important to give your next house a good look-over, it’s even more important if your next house is a foreclosure. Because in case you didn’t get the memo, foreclosed properties aren’t always left in pristine condition.
As the previous owners obviously struggled to make their mortgage, they likely got caught up in things other than home maintenance. As a result, the house may have some serious issues that become yours when you sign on the dotted line. Having a pro look it over will let you determine if you’ve got enough dough to afford buying such a cheap home.
Trustee 2: Loved Ones
Just because a house passes inspection doesn’t mean it’s the place for you. Instead of plunging into buying a foreclosure, have your loved ones check out the place as well. Ask their opinion of the home and accept their opinion for what it’s worth. They may notice issues you overlook because of the great price you’re getting.
If these issues (bad neighborhood, small or unkempt yard, 20 more minutes from work) aren’t enough to keep you moving forward with purchasing the foreclosure, then go for it. Just make sure you consider what your loved ones have to say. They are, after all, trying to look out for your best interest.
Trustee 3: Title Agent
Want to make sure your new home is your home until you’re ready to sell it? Then you need a title agent who makes sure everything is done properly on the front end. That means making sure you get title insurance and a municipal lien search on the property. And a quality title agent won’t let you get away with a hit-and-run lien search. Melanie recommends making sure your search includes code violations, open permits, past due taxes. Otherwise, you may get stuck with something you didn’t bargain for.
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“I had one client who couldn’t be convinced to undergo a municipal lien search, and was so convinced she didn’t need one that she signed an affidavit to hold the title harmless,” Melanie recalls. “As a result, she got stuck with a lien from the previous owner, and it’s all because she was in such a hurry to close!”
Interested in purchasing a foreclosure and want to make sure your money and your home is protected? Contact Melanie Levine at Mellex Title at (954) 914-5858 or Melanie@MellexTitle.com, find Mellex online at www.MellexTitle.com, or follow Melanie on Twitter.
Written exclusively for The Club by none other than Daniel Brantley, chicken farmer and freelance writer and editor. Find him online, follow him on Twitter, or contact him directly. Amplification, Inc. combines the best parts of reputation management, awareness, marketing, public relations, and buzz delivered via social media. Check us out!