If you’re trying to buy a house, you’ve likely come across listings for foreclosed properties. A typical buyer can purchase a foreclosed home, but there are some important considerations to be aware of. Consult this guide if you have questions about the process. 

What You Should Know About Purchasing a Foreclosed Home

What is a foreclosed home? 

In a process known as foreclosure, banks reclaim homes when homeowners fail to pay mortgage debts. On most home loans, banks use the houses as collateral, meaning they ultimately have a claim on the property if homeowners are failing to make monthly payments. 

How are foreclosed homes sold? 

There are two main types of foreclosure: real estate owned (REO) and bank owned homes. Both belong to the lender, but bank owned homes are often sent to auction before being put on the market. If they aren’t sold for cash during an auction, they become REO listings that are sold through REO real estate agents. 

Can you buy a foreclosed home? 

Average buyers can purchase and obtain bank financing for foreclosed homes. As with any home purchase, you’ll need to submit offers, arrange your finances, and go through the steps of the buying process to complete the purchase. 

Where can you find foreclosed homes? 

If you’re ready to buy a house, you can search for foreclosed homes using all of the same tools that you’d normally use to browse listings. Major real estate websites, your local online listing service, and other advertising services will carry current foreclosure listings. 

Should you use a realtor to buy a foreclosed home? 

It’s always wise to use a real estate agent when buying a home—especially if you’re interested in foreclosed properties. There may be additional paperwork and inspections that are needed to buy a house that’s in foreclosure, so you’ll want to have a knowledgeable real estate agent who can guide you through the process. 

If you’re interested in learning more about foreclosure properties, contact The Helping Hands Real Estate Team. This professional real estate team serves buyers and sellers in the Mesa, Gilbert, Chandler, Queen Creek, San Tan Valley, Ahwatukee, and Tempe areas. They’re known for their reliability, responsiveness, and service-oriented approach. Learn more about the buying process online or speak to a representative today at (480) 385-9107.