After living in an apartment for far too long, you have decided to buy a new home. Times couldn’t be better: the rent has shot up to the point that you feel that you’re being extorted; vandals and burglaries are on the rise; and the landlord has let the landscaping and repair work go to the wayside, leaving you, the tenant to repair items that you’re not necessarily comfortable, which in turn makes you question why you are paying such a high amount of money for rent in the first place. As you start to look through current listings on the Internet, you are instantly filled with dread.
A couple years ago, a couple of your close friends called in a dead panic because their home was being repossessed due to hefty mortgage payments they couldn’t afford. They also indicated that when they communicated with the lenders and the banks when they first decided to invest, they were assured that everything would work out and they could in fact afford the massive dream house they desired. While you are intimidated by the idea of having a mortgage that is more than a couple years’ paychecks, you realize that you may not have the issues that your friends had mostly because you want to try to bid on a foreclosed property.
Most of these homes could be formerly owned by people who ended up in the same position that your friends were in. This sounds like a great idea on paper, however you want to get some expert advice. At South Jersey Real Estate, we are a real estate agency in Mt Laurel, New Jersey who can help you find the perfect foreclosed or repossessed home.
South Jersey Real Estate: A Little about Mount Laurel Real Estate in New Jersey
Mount Laurel is a picturesque community located east of Moorestown, northeast of Cherry Hill, and west of Fostertown and Lumberton, New Jersey. It is 22 square miles of suburban bliss, where you can find numerous activities and events. If you have a green thumb and the property association doesn’t allow plants, you can simply fill out an application to become a member of the community garden. If you enjoying volunteering for your community, there are several organizations in this town: Habitat for Humanity; Make a Wish Foundation; and the Big Brothers/Big Sisters programs are just a few.
Looking at this suburban paradise, you come to realize that sadly, there is no real estate in Mount Laurel New Jersey. This isn’t necessarily true. While a lot of the properties have costs of over $300,000, when you buy a foreclosed upon property, you will slice that cost down by possibly 50%. We, at South Jersey Real Estate, do have experience in the foreclosure process and will be happy to represent you if you are interested in purchasing one of these style homes.
South Jersey Real Estate: How to Purchase a Foreclosed Property Using a Realtor in Mt Laurel, NJ
When you first meet with one of our experienced realtors, you decide to bring up the idea of purchasing a foreclosed or repossessed home. The only problem is that you don’t know how to go about it. Luckily, you’ve chosen us, one of the best realtors in Mt Laurel, NJ. We will be happy to explain the process, which we’ll also describe below.
Just like the credit card company, the bank will send a reminder to the current homeowners that their mortgage payment is due. After a couple more attempts to contact them, the bank will begin the foreclosure process. This procedure is a three step procedure, with the last step being where you acquire your home. During the first step, the newly foreclosed property is put on the market to compete with other properties that have individual sellers. This is often called the first phase of default. You can either bid upon this property at this phase or try to get a lower price by participating in the auction, the second step of the foreclosure process.
There are several steps that you should consider before attending an auction. Learn the jargon used in auctions. There are usually two types of auctions that are held; an absolute auction, where bidding is open and the high bidder wins the property. The second auction type is more beneficial to the seller; the reserve auction. This is where one of the seller has a set price in mind. If the piece is sold somewhere near the reserve, they may offer it to the highest bidder or reserve it for another auction, where they may get a better price for it.
Just like shopping for a car or any other high priced item, you want to set your base price. You can do this by looking your property up on a website that will tell you its current market price. Physically look at the property, utilizing a home inspector to note any defects. Be sure to get any repair work listed along with the costs on a list. That way when you do bid on a property, you can add the repairs to your bid. Don’t go alone: bring on of our Mount Laurel realtors with you to help you get through the process. We have been to these auctions and know more about them. Most importantly, stay calm. It is really easy to get swept up in the action of an auction, so if your base price is met or over your limit, walk away.
One last piece of advice for attending a foreclosure auction: be sure to select more than one property. That way if your property gets purchased by one of the other bidders, you don’t have to worry about being out of luck.