With mortgage foreclosures rising to historic levels, many home buyers see foreclosure auctions as a smart way to enter overpriced markets.
There are in fact bargains to be had — if you’re willing to do a lot of homework and are financially secure enough to handle unexpected problems. Here’s what to look for when shopping for a home in foreclosure.
Know what’s available. Skip Stearns, principal of NewOld Homes in Stratham, Mass., encourages would-be bidders to check out the registry of impending foreclosure sales, usually found at your local county courthouse. These subscription-based foreclosure tip sheets typically are published by third parties who sell them to Realtors and investors, so you’ll find out when the pros do that a desirable property is heading for auction. There’s a charge for the registry, typically $150 to $400 a year. Mr. Stearns says, “”If you’re serious about purchasing a foreclosed home, it’s well worth the price.