Advantages of Buying a Foreclosure

If you have heard the term “foreclosure” but aren’t exactly sure what it is, here you go: in a home foreclosure, the owner has stopped making mortgage payments and the bank (lender) has started (or completed) the process of repossessing the home.

This is obviously a very stressful time for the people who are getting their home taken away.  On the other end, foreclosures can be great opportunities for those who want to break into the housing market, which can be especially attractive to Vancouverites who struggle to find something that they can afford.

Advantages of Buying a Foreclosure:

  • The Seller is motivated to sell fast, which may create the chance to get a purchase price that is below market value.  The need for a fast sale increases the bargaining power of the Buyer.
  • The Seller may be more likely to do repairs to make the home more attractive to buyers.
  • The Seller may be more inclined to offer closing cost credits and other concessions.
  • The Buyer can use regular mortgage financing.
  • The Buyer can have the home inspected for deficiencies
  • Legally, the Seller must provide complete history of property’s condition including problems and repairs, etc.

When you find a foreclosed home that you want to buy, you should act fast, as there will likely be many other interested Buyers.  Get ahead of the game and get pre-approved for a mortgage.  Call Ronin Mortgage for more information about getting a mortgage in Vancouver and area and be one step closer to home ownership!

 

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