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Foreclosed homes often go for thousands of dollars less than similar properties, potentially making them a useful way to stretch your home-buying budget. However, these houses often have additional issues, so it’s best to find an experienced real estate agent to guide you through the process. The answers below might also help elucidate some questions you have about foreclosure.

4 FAQ About Purchasing a Foreclosure

What is a foreclosure?

When someone applies to the bank for a home loan, they agree to make regular payments to that institution until their debt is paid off. However, if they stop contributing to their mortgage, the bank has the right to seize the home and resell it to earn their money back.

How do I buy a foreclosed home?

real estate agentBanks sell foreclosed homes through public auctions and listings. Auctions are typically frequented by professional investors with cash on hand, which can make winning a bid extremely difficult. Auction sales are also sight-unseen, with no chance to actually inspect the property before bidding. Therefore, buying a foreclosed house through a real estate agent is usually the best approach.

Does the bank do an inspection before listing a foreclosed home for sale?

Banks are just trying to recoup some of their losses on the house, so they usually won’t invest more than necessary. Because defaulting homeowners often stop taking care of the property, getting a thorough home inspection is a wise investment.

Do I need my own real estate agent?

The agent listing the property works for their client, and won’t necessarily represent your interests. Therefore, you should hire your own real estate agent to help find the right property and negotiate with the selling agent on your behalf to get you the best deal possible.


If you’re looking for property anywhere in the Denver Metro Area of Colorado, let Cheri Long of Priority Properties, Inc. help find your dream home. This real estate agent has over 24 years of experience and will work to make the process as stress-free as possible. Visit her online to browse foreclosed properties, follow her on Twitter for news and listings, or call (720) 505-3893 to schedule an appointment.

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