Foreclosures in Louisville
One of the first things buyers ask me is "are there any foreclosures that we can look at". Their motivation, which is valid, is to pay pennies on the dollar for a great house that the previous owners just could not afford. They picture moving into a perfect foreclosure in Louisville and having instant equity from day one. There are NO perfect foreclosures in Louisville
If it is too good to be true it probably is and foreclosures are no different. There's no guarantee that buying a foreclosure will save money compared with buying a traditional property. Discounts on foreclosures can vary tremendously depending on where in the country you live. Louisville, for example did not have the wild swings and speculation that Nevada, Arizona or Florida experienced. I have even seen some situations where foreclosed homes are actually priced HIGHER than their true value because sellers are trying to pay off the mortgage and cover taxes and closing fees.
Plus, buying a foreclosure involves having an EXPERIENCED AGENT, patience and often a whole lot of luck. Here are issues and details you need to consider:
- There are usually three ways to buy foreclosures in Louisville. Auction, from a bank or from the owner directly (pre-sale). If you're buying at auction, you usually need to pay cash. You also cannot take possession immediately. Expect long waiting periods. When a house remains vacant, vandalism and decay become issues. So factor in repairs to your bid price.
- Make sure you get ACCURATE AND UP TO DATE INFORMATION. Liens and taxes can be attached to the deed. Again get an experience agent to help you through this. In the end, most buyers are turned off by the risks but a good agent can make the difference. If you don't know what you're doing, you could lose your shirt.
- Each state has its own rules governing foreclosures. Courts, taxes that need to be paid, cash up front etc. are governed by the state. Ask me or go to ForeclosurePoint.com to get an idea of your states laws and processes.
- Some states actually give sellers a chance to buy back the property AFTER the auction. Make sure your agent has experience with this one.
- Title insurance is another detail. Get an experienced Title company who knows foreclosures in Louisville. I can help. Here is the gotcha: you cannot get title insurance until after you take possession.
- You need to inspect the title thoroughly. There may be title problems that aren't of record or do not show on the public record at the time you are searching the title. Always buy title insurance the minute you take possession.
- R.E.O. stands for real estate owned. This is when no one buys the property and an auction and it goes back to the bank. Banks may offer mortgages to get rid of the property but the asking price is higher. Work with an experienced mortgage broker on this one. I have two excellent ones I work with.
- Have your agent approach local banks let them know you are prepared to buy a property "as is" with cash. You will usually receive the best discount if these two criteria are met.
There are many discounts to be had with foreclosures in Louisville. I can provide a road map for you to follow. Call me at 502-645-2943.