Average cost to sell a house in Washington

How much does it cost to sell a house in Washington? It depends! While your out-of-pocket costs will vary based on your situation, you can expect 11.40% or more of your home’s final sale price to go toward selling costs. So if you sell your home for $574,114, you'll likely spend about $65,431.

👉 Jump to: Home sale calculator | Discounted commission | How to time your sale

Common expenses for home sellers in Washington

The chart below breaks down some of the most common expenses for home sellers in Washington to help you prepare for the most (and least) costly aspects of selling your home.

Keep in mind these costs are highly variable — particularly the home prep and relocation expenses. Talk to your realtor for a more accurate and tailored estimate of your costs versus final sale price.

While repairs, closings costs, and relocation expenses may be out of your control, you can still save money on realtor fees by either selling for sale by owner (FSBO) or hiring a discount real estate broker.

But your best option is to work with a company like Clever that negotiates lower commissions with full-service, local agents on your behalf. That way you can save money while getting the same level of service as someone who pays full price!

How much will I make selling my Washington house?

How much money you keep in your pocket after selling your house will depend on several factors, including closing costs, taxes, mortgage balance, and more.

If you don't have a mortgage, you'll get the entire sale price minus the cost of selling your home. On average, selling costs are 11.40% of the total cost. So, you could take home $508,683 if you sell your home for the state median home value of $574,114.

But you may owe money on the property — the average Washington homeowner still owes $278,851! If you do, your remaining mortgage balance will come out of your proceeds, cutting into the amount that will finally land in your bank account.

» MORE: See what other factors affect your home sale profit

Cost of selling a house calculator

Use this home sale calculator to get a better idea of how much you'll have to spend to sell your home — and how much you'll take home after!

Home selling costs in Washington: An in-depth breakdown

Preparing your home for sale

Unless you're selling your home as is or to an iBuyer, you need to get your Washington house market-ready. This prep work can help you attract qualified buyers and get the best sale price.

Preparing your home can be as simple as deep cleaning and mowing the lawn. Or it can involve more substantial work, like painting or making repairs.

Discuss with your realtor which preparation costs will pay off the most. You don't want to spend money on improvements that you may not get back when you sell.

» MORE: Average home prep costs

Realtor fees in Washington

Realtor commission is one of the biggest fees for selling a house in Washington. In a standard real estate transaction, you (the seller) pay the commission for both your listing agent and the buyer's agent. Here's the breakdown:

On average, paying full commission to sell your house in Washington costs about $30,428 — which will likely be around half of your total home selling expenses.

» MORE: How realtor commission is split in a home sale

Closing costs

Closing costs are a blanket term for the various fees and expenses both buyers and sellers pay at the close of a real estate transaction. Closing costs don't include realtor commissions.

Depending on your market and how much interest there is in your home, you could negotiate for the buyer to cover closing costs, but you shouldn't assume this will be the case.

If you're in a seller's market, you may be able to list your home and sell it as is. But, if the market cools down or you have a property that's harder than average to sell, you may need to consider offering incentives or making concessions. This could mean chipping in for closing costs, offering repair credits, or paying for a home warranty.

Keep in mind, Washington's excise tax is based on the sale price of the home. Most sellers fall in the 1.28% range (homes priced $500,000 to $1.5 million), but you could pay as low as 1.1% or as high as 3% depending on your home value.

» MORE: How much are seller closing costs in Washington?

Moving expenses

If you're selling your own home, don't forget to account for moving and transition costs. Even if you're moving locally, you may need to rent a truck or storage unit. If the timing doesn't line up perfectly, you'll also probably have to pay utilities and mortgages on your new and your old house.

In Washington, the average moving costs are $576 locally and $4,752 for 1,000 miles or more — which accounts for packing supplies, movers, and carrying costs.

» MORE: See how much the average seller spends on moving expenses

How to avoid losing money on your Washington home sale

Whether you’re selling a single family home in Spokane, a condo in downtown Seattle, or a duplex in Tacoma, these tips will help you maximize your profits from your Washington home sale!

1. List with a low commission real estate agent

The majority of your expenses are taken up by real estate agent commissions, so cutting those down is a great way to minimize the cost to sell your home — and Clever can help!

Clever matches you with local full-service agents from well-known brokerages like RE/MAX, Keller Williams, and Century 21. But, instead of paying the typical 2.67% listing fee, you'll only pay 1.5%!

With Clever, you can compare multiple Washington agents to find the one that best fits your needs. Even better, finding an agent through Clever won't cost you a dime, and there's no obligation to move forward until you find the perfect agent.

2. Time your sale to get top dollar for your Washington home

If you want top dollar for your Washington home, the ideal time to sell is June. During this month, homes sell for around $70,567 more than the annual average.

But if your priority is selling quickly, May is the best time to put your home on the market. Homes sold in May are on the market for an average of 22 days, which is 17 days less than the annual average.

However, these are general trends, and many sellers can have a successful sale outside of the busiest months.

We recommend working with a top agent who knows the local market trends. They can help you implement a strategy to attract the highest offers in the shortest amount of time.

» MORE: When is the best time to sell a house in Washington?

3. Negotiate like a pro

Negotiating is a delicate balance between getting as much money as you can for your home and keeping the buyer happy and interested.

Depending on the house and the state of the market, buyers may request that you pay for repairs, closing costs, a home warranty, or the title search, among other things. These fees can add up quickly and eat into your profits.

Using a top-rated real estate agent can be an invaluable resource when it comes to negotiating, as they'll do most of the back-and-forth for you.

If you can't get out of paying for repairs, we recommend letting HomeAdvisor connect you with top local professionals so you can compare quotes and get the best possible price.

4. Save on repairs and upgrades

You can lower the cost of new appliances for your property by using companies like Whirlpool that give you 10% off when you buy two or more full-priced items.

You can also cut down on labor costs by using services like TaskRabbit. Whether it be cleaning, landscaping, installing appliances, or moving, TaskRabbit can connect you with people in your area who will help for less than a full-time professional would charge.

FAQ about costs to sell in Washington

Additional resources for Washington home sellers

8 Steps to Selling a House in Washington

Selling your house in Washington? Our in-depth guide breaks down the process into 8 easy-to-understand steps, from listing through closing.

How to Sell a House By Owner in Washington State (2023 Update)

Selling your house without a realtor can save you 2.27% to 6.09% in Washington. Find out more about the FSBO process, its pros and cons, and tips for success.

Average Time to Sell a House in Washington

We’ve compiled the latest data on how long it takes to sell a house in Washington — along with top tips on how to sell your house faster AND for top dollar.

The post How Much Does It Cost to Sell a House in Washington State? appeared first on Semya-Moya.

At some point you might wonder if buying a foreclosure in North Carolina is a good idea. In many cases, it can be!

Buying North Carolina foreclosures can help you get a property for under market value, which you can then flip for a profit or live in. And the North Carolina foreclosure market is growing — the number of foreclosed homes was up 102% from the previous year.[1]

⚡ Just looking for foreclosed homes in North Carolina? Gain instant access to local listings before they hit the market on Foreclosure.com!

How to buy a foreclosed home in North Carolina

1. Get pre-approved for financing

The financing options available for a foreclosed home depends on what stage of foreclosure the property is in.

Usually, you can get traditional financing for pre-foreclosures and REOs, as long as the property meets the lender requirements. For example, some lenders won't fund a loan to buy a house that's in total disrepair.

When buying a pre-foreclosure, you may be operating in a tight timeframe to help the seller avoid foreclosure, so you'll want to move quickly and have the financing lined up in advance.

Need a professional to help you navigate foreclosure financing? You can fill out a short profile using Quicken Loans' automated tool and gain access to customized help for your situation.

If you want to search for financing in North Carolina on your own, you can look into the NC Home Advantage Mortgage and NC 1st Home Advantage Down Payment programs to see if you qualify for assistance or special financing terms.

2. Hire a top North Carolina realtor with foreclosure expertise

Working with an agent who has experience buying foreclosures is imperative. The right agent will help you find great opportunities before other buyers are aware of them. They may even have a relationship with the REO departments of your local lenders, which would give you an inside track on a consistent pool of properties.

Your agent will also ensure you don't miss any important deadlines and help protect you from title issues or surprise expenses.

If you're searching for a realtor who specializes in foreclosures, we recommend using a free service like Clever. Clever matches you with experienced local agents who can help you find the right property. You can also get cash back when you close.

Requesting agent matches is free, and there's no obligation. Simply fill out the form below to get agent recommendations sent straight to your inbox!

3. Find foreclosed homes in North Carolina

Unless you're an investment professional, we recommend you stick to pre-foreclosures and REOs. Buying one of these properties is more like a traditional home sale and involves less risk.

The simplest way to find foreclosures in North Carolina is to use a service like Foreclosure.com. You'll gain instant access to foreclosure listings near you before they hit the mass market.

4. Tour foreclosures in person

Since foreclosures are usually sold as is, it's important to try and see them before submitting an offer. With pre-foreclosures or REOs, you can usually see the property in person and have it inspected. This isn't an option at auctions, meaning you have no idea what you're in for.

If you don't have time to order an inspection, you could bring in a contractor to give you a sense of what kind of work you'll need to do and how much it'll cost. For flippers and investors, this is a crucial step to figuring out the after repair value (ARV).

» LEARN: More about how ARV works

5. Submit offers

Making an offer on a North Carolina pre-foreclosure or REO is similar to making an offer on a conventional property: you submit an offer, negotiate terms, and agree on a closing date.

With a pre-foreclosure, the seller is highly motivated to sell before the house is foreclosed, so you'll want to be prepared to submit an offer quickly.

If you're looking at an REO, there are usually more specific rules for submitting offers. Each lender treats this a bit differently, but you'll want a letter of pre-approval, and you should always follow the lender's instructions for submitting offers. A good agent can help you through this process.

For an auction, if it's in person, attend the auction and raise your hand when you want to submit bids. If it's online, register for the auction and enter your bids electronically.

The auction may have predetermined bid increments, minimum bids, and occasionally buyer's premiums (an additional fee). Buyers should contact the trustee running the auction to ensure they have all these details before submitting an offer.

6. Conduct due diligence on the property

There are often some kind of physical or legal issues with foreclosures. It's extremely important to conduct due diligence by inspecting the property and running a title search. These measures will shield you from unexpected physical or legal issues with the property.

» MORE: Learn how inspections work and what happens after

With auctions, inspections and property viewings are generally not allowed. Your due diligence will mostly be limited to checking for a clear title, driving by the property to assess the condition of the outside and neighborhood, and preparing to make an offer at the auction.

7. Get the home appraised if you plan to finance it

If you need financing to buy a house, you'll need to show the lender that the investment is worth it. This is where appraisals come in.

» MORE: Find out what appraisals are and if you need one

If the appraisal comes in low, you'll need to come out of pocket for the difference. For example, if you offer $315,000 for a mid-priced North Carolina home and it appraises at $300,000, the lender will only finance $300,000. You'll need to cover the remaining $15,000 or renegotiate the sale price.

8. Close on the purchase

The closing process for pre-foreclosures and REOs is similar to closing on conventional homes: you go to a title company, fill out the paperwork, and pay the seller for the property.

The title company will tell you in advance what's expected from you, but it helps to have an expert on your side to guide you. If you use an agent recommended by Clever, you'll have the peace of mind knowing an experienced agent has your back — and you could even get cash back at closing!

Auctions are a bit more complicated. If you submit a winning bid, you need to provide the trustee with a certified check — usually 10% of the purchase price — as a deposit.

Then a Report of Sale will be filled out and filed at the county clerk's office. However, there's still a 10-day upset period when someone can outbid you.

If you make it through the upset period without being outbid, you'll need to deliver the full amount of the sale to the trustee, usually within 30 to 45 days.

What is a foreclosed home?

A home is foreclosed when a borrower doesn't pay their debt and has their home repossessed to cover that debt. This occurs most commonly when someone fails to pay their mortgage, taxes, or both.

The term "foreclosure" is often used more generally to apply to a property in any stage of the foreclosure process: pre-foreclosure, auction, and real estate owned (REO).

Pros and cons of buying a North Carolina foreclosure

For buyers, the biggest draw to foreclosed homes is usually the discounted sale price. But there are other advantages, particularly in competitive markets.

That said, you need to be aware of the risks that come with these properties. Title issues and physical damage are just a couple of the problems you might come across when you buy foreclosures in North Carolina.

Pros

✅ Lower purchase price

The major benefit of buying a foreclosed home is the possibility of getting it for below market value. Most sellers are in a tight place financially, so savvy buyers can leverage that to negotiate lower sale prices.

✅ Increased inventory

In a growing state like North Carolina, any opportunity to add homes to your search increases the chances of finding the right property. Considering foreclosures is a good way to expand your search.

✅ Room to build in equity

Since many foreclosures have issues or have been neglected in some way, there's often an opportunity to build in equity by renovating or repairing the home.

For example, you might buy a foreclosure for $150,000 and spend $25,000 renovating it, and it could be worth $190,000 after all the work is done. That's $15,000 of equity you just created!

✅ Faster buying process than some states

Since North Carolina is a non-judicial state, the foreclosure process goes much quicker and smoother than in judicial states. It also makes the process of buying a foreclosure significantly less complicated for interested buyers.

✅ No redemption period

Not having a redemption period means you can rest assured that when you buy a foreclosed home, it's yours — assuming you ran a title check and it came back clean.

Cons

🚫 Damaged property

Many foreclosures have been vacant or neglected for an extended period, so they may have substantial damage that needs repair. There are also occasions when distressed sellers intentionally damage property on the way out because they're angry about being forcefully removed from their home.

🚫 Ethical concerns

Some homebuyers feel like they're taking advantage of someone's misfortune when they buy a foreclosure. In this case, peace of mind outweighs the potential profit you could achieve by purchasing one of these homes.

🚫 Title issues

For a property to be foreclosed, a homeowner must fail to repay a debt for which the property is acting as collateral. However, there can be more than one kind of debt.

For example, a homeowner could fail to pay their taxes as well as their mortgage to their lender. In this case, both the government and the lender have a claim to the property — also known as a lien.

When buying foreclosures, always run a title check to see who has a lien on the property and to ensure the title is clean.

🚫 Inheriting tenants

Due to the Protecting Tenants at Foreclosure Act of 2009, you're required by federal law to honor the lease for tenants in a North Carolina property if you buy a foreclosure and intend to rent it out. If you plan to live there, you still need to give tenants 90 days to vacate.

🚫 Upset period

Although North Carolina doesn't have a redemption period for previous owners to re-take possession of their property, it does allow anyone to outbid your winning bid at an auction within 10 days if it's at least 5% over your bid.

Stages of a foreclosure in North Carolina

The basic stages of foreclosure in North Carolina are pre-foreclosure, auction, and REO property. We recommend that you stick to pre-foreclosures and REOs if you're not a professional investor, since auctions can be risky and cash-intensive.

Pre-foreclosure

The pre-foreclosure process begins after a borrower has missed multiple months of payments and is issued a notice of default by their lender. Most lenders in North Carolina choose non-judicial foreclosures because they can foreclose on properties with delinquent payments much quicker than in the judicial process.

The pre-foreclosure window may be as little as 90 days before the property is scheduled for a foreclosure auction, so be ready to close fast.

Foreclosure auction

If a property doesn't sell during the pre-foreclosure period, it goes to foreclosure auction. In North Carolina, foreclosure auctions must be publicly advertised for at least 21 days before the auction takes place.

These sales usually occur at the county courthouse or online. You can find the details of where and when on the posting that alerted you to the auction.

If you submit the winning bid, you'll need to give the trustee a certified check for the deposit, which is usually 10% of the winning bid. Then you have to wait 10 days to see if anyone outbids you during the upset period before you pay the full amount and receive the title to the property.

Generally, you have 30 to 45 days to pay the full amount to the trustee.

Popular areas for purchasing foreclosed homes at auction include:

• Wake County (Raleigh)
• Guilford County (Greensboro)

Real estate owned (REO) foreclosures

If a property doesn't sell at auction, the lender or government takes possession of the property — these are called REOs.

REOs are good properties for buyers who want to avoid taking advantage of distressed sellers or the risk of buying site-unseen homes at an auction. That said, there can be significant delays in dealing with REOs, so these are not for buyers who are in a hurry.

In fact, in North Carolina it can take anywhere from 6 to 18 months for a property to complete the foreclosure process and be moved to an REO department.

» MORE: Learn about HomeSteps for financing REOs in North Carolina

Another important thing to remember is that REOs have failed to sell as pre-foreclosures or at auction. That usually means there's something wrong with them.

As such, buyers should be prepared to do substantial renovations on the property, regardless of whether they want to rent it, flip it, or live in it.

North Carolina foreclosure laws for buyers

The foreclosure laws in North Carolina generally favor the buyers, though not always.

North Carolina foreclosures are usually non-judicial, meaning the properties do not require the lender to sue the borrower. This makes the process go much smoother and faster.[2]

Deficiency judgements are available to lenders, which means they can accept lower payment on a foreclosed property than is owed on it — also called a short sale.[3] However, banks can take weeks or even months to respond to a short sale offer, so don't expect this to happen quickly or easily.

There's no redemption period for the previous owner of a foreclosure in North Carolina, but the 10-day upset period following a foreclosure auction allows anyone, including the former owner, to outbid the winner by at least 5% to gain ownership of the property.

Due to the Protecting Tenants at Foreclosure Act, investors who buy properties with tenants in place must honor the original lease. Anyone who intends to live in the home must give the current tenants at least 90 days to vacate the property.[4]

Should I buy a foreclosed home in North Carolina?

The decision to buy a foreclosed house or not depends on your circumstances and the type of foreclosure you're interested in.

We recommend that buyers who are in a hurry focus on pre-foreclosures, because those are more likely to close quickly and allow for conventional financing.

Buyers who want a standardized experience working with professionals should consider REOs as a primary focus. These transactions go slower, but REO departments handle foreclosures all the time and have a tried-and-true method of selling them.

Avoid auctions unless you're a professional investor, flipper, or contractor. Auctioned foreclosures usually require substantial cash upfront and may need significant rehabbing.

If you decide to buy a foreclosure, we recommend working with an experienced agent who can help you get the first crack at great opportunities and avoid money pits.

Reach out to one of Clever's recommended agents to see how they can help you find and buy your next home.

Why trust us?

Clever strives to provide the most up-to-date, accurate, and useful information available for our readers. We've done extensive research to locate and verify this information, and we've also consulted one of our top agents who has experience buying foreclosures.

The author, Alex Long, has been investing in residential real estate since 2016 and has bought homes in various states across the U.S.

FAQs about buying a foreclosed house in North Carolina

Related links

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8 Steps to Buying a House in North Carolina

From saving for a down payment to reaching the closing table, learn how to navigate the key steps to buying a house in North Carolina.

Top 5 Best Real Estate Investment Markets in North Carolina

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The post 8 Steps to Buy a Foreclosed Home in North Carolina (2023 Guide) appeared first on Semya-Moya.

As a home buyer, you might ask yourself if you should save some money and buy a foreclosure. With median Pennsylvania home prices up 4.11% in the past year and mortgage rates on the rise, finding an affordable foreclosure seems increasingly appealing.

Buying a foreclosed home in Pennsylvania could be a great opportunity, especially for flippers looking to cash in on increasing home prices. That said, you need to know what you're doing, because there are many pitfalls and rules that come with buying foreclosures.

⚡ Just looking for foreclosed homes in Pennsylvania? Gain instant access to local listings before they hit the market on Foreclosure.com!

How to buy a foreclosed home in Pennsylvania

1. Get pre-approved for financing

The first step a buyer should take when buying a foreclosure is lining up financing.

Whether you're interested in pre-foreclosures or REOs, being pre-approved and having a Proof of Funds letter will make your offer more competitive and allow you to close faster. In fact, most REO departments won't even consider your offer without a pre-approval letter.

Securing financing for a pre-foreclosure or REO is very similar to the process for a traditional property. It's important to schedule the pre-foreclosure sale before the foreclosure deadline. For professional help with foreclosure financing, fill out information about your purchase using Quicken Loans' automated tool.

For down payment assistance in Pennsylvania, the PA Housing Finance Agency has several options you might qualify for, such as the Keystone Advantage, K-FIT, and HOMEstead programs.

2. Hire a top Pennsylvania realtor with foreclosure expertise

Buying a foreclosed home in Pennsylvania can be a complicated process. That's why hiring an agent experienced with foreclosures can make all the difference. They'll help you navigate the additional risks, effectively negotiate with motivated and distressed sellers, and avoid missing important deadlines.

It's also possible your agent will have a relationship with REO departments of local lenders or other entities who deal with foreclosed homes. Having the inside track means you could be the first to put an offer on a great property.

Looking for a realtor who specializes in foreclosures? Clever can match you with experienced local agents who'll help you find the right property and get a great deal. You can also get cash back when you close on your Pennsylvania property.

Requesting agent matches is free, and there’s no obligation. Just complete the form below to get agent recommendations sent straight to your inbox!

3. Find foreclosed homes in Pennsylvania

We recommend that most buyers stick to pre-foreclosures and REOs in Pennsylvania. The process for buying these properties is more similar to traditional home purchases.

The best way to find foreclosed homes in Pennsylvania is through a service like Foreclosure.com. You'll get direct access to local foreclosure listings before they hit the mass market!

There are also free options for finding foreclosures, but often these sites are unreliable or provide out-of-date information.

4. Tour foreclosures in person

If you decide to stick with pre-foreclosures and REOs, one major benefit is the ability to see them in person. Auctioned properties, on the other hand, are usually bought site unseen and as is.

When touring a property, you'll want to look for any red flags. These might include significant damage to the foundation, evidence of harmful substances, or multiple distressed properties in the area. You can get an inspection later to get a more comprehensive idea of issues with the property, but this initial visit will tell you if it's even worth pursuing.

If you're an investor, consider having a contractor come with you on your visit or after to provide an assessment of how much work they think needs to be done and what it'll cost. This is crucial for determining the after repair value (ARV) of the home, which can help you determine your potential profit when reselling the home.

» LEARN: More about how ARV works

5. Submit an offer

Making offers on pre-foreclosures and REOs is quite similar to conventional purchases. The major differences? Pre-foreclosures often have distressed sellers who are dealing with losing their home. And with REOs, you're buying from a bank instead of a person. REOs usually have specific guidelines regarding terms and how to make an offer.

For both pre-foreclosures and REOs, it's a major benefit, and often a requirement, to have a pre-approval letter included with your offer. This letter shows the seller you're serious and ready to close.

Auctions are a different experience entirely. Since you probably won't have traditional financing, pre-approval letters won't be a concern. However, you'll need to submit bids according to the auction rules and be prepared to pay within the required timeframe — usually 10 days after the auction.

Buyers should contact the auction's trustee for specific instructions on minimum bids, bid increments, and how to submit offers.

6. Conduct due diligence on the property

When buying a foreclosure in Pennsylvania, it's extremely important to protect yourself from additional risk. Getting the property inspected and conducting a title search are two of the most effective ways to do that, because they'll protect you from most legal and physical issues. Pennsylvania law requires that all home inspections be conducted by a member of the National Home Inspection Association.

» MORE: Learn how inspections work and what happens after

Auctioned foreclosures don't usually allow buyers to get inside the home, let alone have it inspected. Most of the due diligence in auctions involves driving by the property, researching the tax history, and learning about the surrounding area. Ultimately, the discount on these properties is largely the result of the substantial risk buyers take in buying them.

7. Get the home appraised if you plan to finance it

Whenever a lender loans someone money to buy a property, they want assurances that their money is being invested wisely. That's why they usually require a formal appraisal to determine the property's fair market value.

» MORE: Find out what appraisals are and if you need one

If the appraisal comes in low, you'll need to come out of pocket for the difference. For example, if you offer $250,000 for a Pennsylvania home and it appraises at $240,000, then the lender will only finance $240,000. You'll need to cover the remaining $10,000 or renegotiate the sale price.

8. Close on the purchase

Closing on a pre-foreclosure or REO is a lot like conventional purchases — you go to a title company, fill out the paperwork, and pay the seller for the property.

The title company will tell you in advance what's expected from you, but it helps to have an expert on your side to guide you. If you use an agent recommended by Clever, you'll have the peace of mind knowing an experienced agent has your back — and you could even get cash back after closing!

If you purchase a home at a foreclosure auction, you'll usually need to pay your deposit (about 5–20% of the bid) the day of the auction with cash or certified funds and the remaining funds within 10 days.

What is a foreclosed home?

When a homeowner fails to pay their mortgage or debts that use the house as collateral, the lender can take possession of the borrower's home as compensation. This is called a foreclosure.

The term "foreclosure" is often used more generally to apply to a property in any stage of the foreclosure process: pre-foreclosure, auction, and real estate owned (REO).

Pros and cons of buying a Pennsylvania foreclosure

Pros

✅ Lower purchase price

The major benefit of buying a foreclosed home is the possibility of getting it for below market value. Most sellers are in a tight place financially, so savvy buyers can leverage that to negotiate lower sale prices.

✅ Room to build equity

Since many foreclosures have issues or have been neglected in some way, there's often an opportunity to build equity by renovating or repairing the home.

For example, you might buy a foreclosure for $150,000 and spend $25,000 renovating it, and it could be worth $190,000 after all the work is done — that's $15,000 of equity you just created!

✅ Fewer title concerns

In many states, concerns over title issues are common when buying foreclosures. Pennsylvania law, however, requires lenders to run a title search to make sure the home is free from other encumbrances before they can request a foreclosure suit. So you don't need to worry about whether the owner of the property has the legal right to sell it to you.

✅ No redemption period

Since Pennsylvania doesn't have a redemption period, you can rest assured that when you buy a foreclosed home, it's yours. Unlike other states, there are no laws in place that allow the previous owner to retake possession of the property.

✅ Win-win scenarios

Buying a pre-foreclosure could allow you to get a property for a discount, but you could also save the seller from having their credit ruined and paying for legal fees — not to mention the stress of being forcefully evicted from their own home.

Cons

🚫 Damaged property

Many foreclosures have been vacant or neglected for an extended period, so they may have substantial damage that needs repair. There are also occasions when distressed sellers intentionally damage property on the way out because they're angry about being forcefully removed from their home.

🚫 Ethical concerns

Some home buyers feel like they're taking advantage of someone's misfortune when they buy a foreclosure. In this case, peace of mind outweighs the potential profit you could achieve by purchasing one of these homes.

🚫 Inheriting tenants

Due to the Protecting Tenants at Foreclosure Act of 2009, you're required by federal law to honor the lease for tenants in a property if you buy a foreclosure and intend to rent it out. If you plan to live there, you still need to give tenants 90 days to vacate.

🚫 Delays

Since Pennsylvania is a judicial foreclosure state, the foreclosure process can experience delays through every stage of foreclosure. For example, auctions can be postponed up to 100 days for a myriad of legal reasons.

🚫 Old homes

Many of the major cities in Pennsylvania are historic cities. This is great for tourists, but it also means a lot of the homes can be quite old, and old homes usually mean more problems. The fact that foreclosures are often neglected only increases the potential headaches with old homes.

Stages of a foreclosure in Pennsylvania

The basic stages of foreclosure in Pennsylvania are pre-foreclosure, auction, and REO property. We recommend that you stick to pre-foreclosures and REOs if you're not a professional investor, since auctions can be risky and cash-intensive.

Pre-foreclosure

In Pennsylvania, the pre-foreclosure process can't begin until the borrower has missed at least 120 consecutive days of payments. During that time, the lender must call the homeowner to notify them of delinquency and offer them options to get caught up. After an additional 45 days of missed payments, the lender must also send a letter to the homeowner to the same effect. The foreclosure process begins only if the borrower fails to respond or meet the lender's proposed conditions.

The benefit of this lengthy process is that it gives delinquent homeowners more time to sell their home, which could mean a pre-foreclosure deal for you. Contact a top-quality Clever agent now to seal the deal.

Foreclosure auction

If a property doesn't sell during the pre-foreclosure period, it goes to foreclosure auction. Pennsylvania law requires that all foreclosed properties must go through a public auction before becoming real estate owned (REOs).

Auctions can be held in person (usually at the county courthouse) or online, though online auctions are becoming increasingly popular.

To find details like time, date, and location of the auction, read the description of the auction advertisement, which you can find on your county sheriff's website or on sites like auction.com.

Popular areas for foreclosure auctions include:

• Allegheny County (Pittsburgh)
• Dauphin County (Harrisburg)
• Philadelphia County

Real estate owned (REO) foreclosures

If a property doesn't sell at auction, the lender or government takes possession of the property — these are called REOs.

REOs are good properties for buyers who want to avoid taking advantage of distressed sellers or avoid the risk of buying site-unseen homes at an auction. That said, there can be significant delays in dealing with REOs, so these aren't for buyers who are in a hurry.

Since REOs have failed to sell either in the pre-foreclosure or auction stages, it's likely there's something wrong with them. You should approach these with the expectation of having to do some work on the property.

Pennsylvania foreclosure laws for buyers

The laws governing foreclosures in Pennsylvania are mixed from a buyer's perspective.

Pennsylvania is a judicial state, meaning the foreclosure process takes longer and has more potential complications than a non-judicial state, which could result in your deal falling through.

Due to the Protecting Tenants at Foreclosure Act, investors who buy properties with tenants in place must honor the original lease. Anyone who intends to live in the home must give the current tenants at least 90 days to vacate the property.[4]

Deficiency judgments are allowed in Pennsylvania, which means properties can be sold for less than is owed on them (also called a short sale), but this requires a separate lawsuit to be filed within six months of the deed being transferred to a new owner after a sheriff's sale. So it's possible that you could purchase a property below fair market value, but it's not quite as likely or easy as it would be in other states with simpler deficiency judgment laws.

There's no redemption period in Pennsylvania, and state law requires lenders to ensure a property is free of additional encumbrances before foreclosing, which eliminates a major risk for buyers.

Should I buy a foreclosed home in Pennsylvania?

The decision to buy a foreclosed house or not depends on your circumstances and the type of foreclosure you're interested in.

We recommend buyers who are in a hurry focus on pre-foreclosures, because those are more likely to close quickly and allow for conventional financing.

Buyers who want a standard experience working with professionals should consider REOs as a primary focus. These transactions go slower, but REO departments handle foreclosures all the time and have a tried-and-true method of selling them. These properties are also required by law to have the title checked and cleared before being foreclosed, so there's an additional safety net for buyers.

We recommend you avoid auctions unless you're a professional investor, flipper, or contractor. Auctioned foreclosures usually require substantial cash up front and may need significant rehabbing.

If you decide to buy a foreclosure, we also recommend working with an experienced agent that can help you get the first crack at great opportunities and avoid money pits.

Talk to one of Clever's recommended agents to see how they can help you find and buy your next home!

Why trust us?

Clever strives to provide the most up-to-date, accurate, and useful information available for our readers. We've done extensive research to locate and verify this information, and we've consulted one of our top agents who has experience buying foreclosures.

The author, Alex Long, has been investing in residential real estate since 2016 and has bought homes in various states across the U.S.

FAQs about buying a foreclosed house in Pennsylvania

Related links

How to Find a Real Estate Agent That's Right for You

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The post 8 Steps to Buy a Foreclosed Home in Pennsylvania (2023 Guide) appeared first on Semya-Moya.

Whether you're an investor, flipper, or regular home buyer, buying a foreclosed home in Texas can be a good opportunity to get a property for less than market value — if you know what you're doing.

This is particularly true in Texas, where mid-priced home values have risen significantly in recent years and the supply of available homes can't keep up with the current demand.[5]

⚡ Just looking for foreclosed homes in Texas? Gain instant access to local listings before they hit the market on Foreclosure.com!

How to buy a foreclosed home in Texas

1. Get pre-approved for financing

Your options for financing a foreclosed home depend on the stage of the foreclosure. At a foreclosure auction, you usually need cash to buy a property. But you can purchase a pre-foreclosure or REO using a traditional home loan.

If you don't have the cash reserves to purchase a foreclosed home outright, you'll need to show that you have financing from another source. So before you make an offer on a property, you'll want to get a pre-approval letter from a lender.

A pre-approval letter shows how much you're qualified to borrow based on a lender's preliminary review of your credit score and finances. Sellers aren't likely to take your offer seriously without one.

You can jump-start the pre-approval process using Quicken Loans' free automated tool. Answer a few basic financial questions, and in under five minutes, you'll have a professional opinion of how much you're qualified to borrow. You can also see if you're eligible for down payment assistance programs in your area.

While a pre-approval letter doesn't require you to work with a specific lender, it offers sellers a snapshot of your financial strength as a borrower. In a competitive offer situation, this proof of funding can make the difference between securing the winning bid or not.

If you're a first-time home buyer in Texas, you can look into the Home Sweet Texas and Home for Texas Heroes programs. Both programs offer down payment assistance, even for pre-foreclosures and REOs.

Since foreclosures often require repairs or renovations, you might also look into the Texas Bootstrap Loan Program or a Homebuyer Assistance with New Construction or Rehabilitation (HANC) loan, both of which are geared toward homes that require some kind of work.

2. Hire a top Texas realtor with foreclosure expertise

Buying foreclosures can be even more complicated than traditional home buying. If you're unfamiliar with the process, find an agent with experience handling foreclosures. An experienced agent can help you navigate the extra paperwork and tricky negotiations for a pre-foreclosure or REO. They might also give you the inside scoop on local foreclosure properties before they hit the market.

If you're looking for a Texas realtor with foreclosure expertise, Clever's team can connect you. Through our free agent-matching service, you get your pick of top-performing agents in your area, plus cash back for eligible purchases.

When you request an agent match from Clever's network, there's zero cost and no pressure to commit. Simply fill out the form below to compare agent recommendations!

3. Find foreclosed homes in Texas

If you're new to buying foreclosures, you should probably get your feet wet with pre-foreclosures or REOs. Unlike foreclosure auctions, which often require you to pay cash sight unseen, homes in the other stages of foreclosure allow you to secure traditional funding and conduct your due diligence through inspections and appraisals.

The foreclosure market is tight, and you'll likely face competition. If you're serious about purchasing a foreclosure, consider signing up for a service like Foreclosure.com.

As the internet's largest and most up-to-date foreclosure database, Foreclosure.com offers direct access to local foreclosure listings — often before they hit the mass market. Its free trial lets you access listings for seven days before purchasing a monthly subscription.

4. Tour foreclosures in person

One major benefit of buying pre-foreclosures or REOs is that you can tour the property before making an offer (this isn't usually possible with auctions). If you're not experienced in renovating and rehabbing properties, you should always try to see a property in person before submitting an offer.

You might not have time to order an inspection, but you can bring a contractor with you to get an initial sense of any major flaws with the property — and what they'll cost to fix. If your goal is to flip the house, this step is crucial for figuring out your after repair value (ARV).

» LEARN: How ARV works

5. Submit offers

Making an offer on a pre-foreclosure is a lot like making an offer on a conventional home, except the seller is highly motivated and may be trying to close before a foreclosure deadline. Making an offer that includes a fast close date is a good way to appeal to the seller.

REOs usually have more specific rules for submitting offers. Each lender treats this a bit differently, but you'll want a letter of pre-approval, and you should always follow their instructions for submitting offers. A good agent can help you through this process.

Auctions have their own set of rules for submitting offers. In Texas, auctions are usually held on the first Tuesday of every month between 10 a.m. and 4 p.m. at the county courthouse. These sales usually require cash deposits right away and payment in full shortly after.

You'll need to go to either the county sheriff's website (e.g., Harris or Dallas) or a site like auction.com for specific instructions on finding auctions and submitting offers.

6. Conduct due diligence on the property

Conducting a title search and getting the property inspected are arguably the most important things to do before making an offer on a foreclosure.

Since foreclosures only exist when bills aren't paid, there's an additional risk of claims against the title. Conducting a title search ensures that there aren't liens against the property, so you can rest assured that the home is yours once you close.

Inspections help you avoid major issues with the property that may be hard to see with a simple walk-through.

» LEARN: How inspections work and what happens after

With auctions, inspections and property viewings aren't generally allowed. Your due diligence will be mostly limited to checking for a clear title, driving by the property to assess the condition of the outside and the neighborhood, and preparing to make an offer at the auction.

7. Get the home appraised if you're financing it

If you're financing the home, you'll need to get the property appraised to determine its fair market value. Lenders use the appraisal to ensure they don't lend you more than the home is worth. They usually have appraisers they work with, so you just need to contact them, schedule a visit to the property, and notify the seller.

» MORE: Find out what appraisals are and if you need one

If the appraisal comes in low, you'll need to come out of pocket for the difference. For example, if you offer $200,000 for a home and it appraises at $190,000, then the lender will finance only $190,000. You'll need to cover the remaining $10,000 or renegotiate the sale price.

8. Close on the purchase

For an auction, you'll need a cashier's check ready for the down payment the day of the auction. The trustee of the sale will give you the information you need to pay the remaining amount by the deadline — usually no longer than 30 days after the sale. At that point, you'll receive the deed to the property.

For pre-foreclosures and REOs, the closing process is similar to closing on conventional homes: you go to a title company, fill out the paperwork, and pay the seller for the property.

The title company will tell you in advance what's expected from you, but it helps to have an expert on your side to guide you. If you use an agent recommended by Clever, you'll have peace of mind knowing an experienced agent has your back — and you could even get cash back at closing!

What is a foreclosed home?

A home is foreclosed when a homeowner fails to pay their debt and the party who is owed money takes possession of the property.

The term "foreclosure" is often used more generally to apply to a property in any stage of the foreclosure process. There are three main types of Texas foreclosures: pre-foreclosures, auctions, and real estate owned (REO) foreclosures.

Pros and cons of buying a Texas foreclosure

The primary benefit of buying a foreclosed home in Texas is the likely discounted price. Buyers also appreciate the increased inventory to choose from and the possibility of quickly gaining equity by renovating the property.

The risks include damage to the property, title issues, and other legal issues.

Pros

✅ Lower purchase price

Buying a foreclosed home could mean getting a home below market value. Most sellers are in a tight place financially, so savvy buyers can leverage that to negotiate lower sale prices.

✅ Increased inventory

In a state like Texas where housing demand is consistently outpacing supply, any opportunity to add homes to your search increases the chances of finding the right property. Considering foreclosures is a good way to expand your search.

✅ Room to build equity

Since many foreclosures have issues or have been neglected in some way, there's often an opportunity to build equity by renovating or repairing the home.

For example, you might buy a foreclosure for $150,000 and spend $25,000 renovating it, and it could be worth $190,000 after all the work is done. That's $15,000 of equity you just created!

Cons

🚫 Damaged property

Many foreclosures have been vacant or neglected for an extended period, so they may have substantial damage that needs repair. Sometimes distressed sellers intentionally damage property on the way out because they're angry about being forcefully removed from their home.

🚫 Redemption period

In Texas, owners of tax-foreclosed properties have up to two years to redeem their property after foreclosure. This means you could close on a foreclosure, own it for over a year, and then be forced to give it back to its previous owner who caught up on their taxes.

🚫 Title issues

For a property to be foreclosed, a homeowner must fail to repay a debt for which the property is acting as collateral. This can apply to more than one kind of debt.

For example, a homeowner could fail to pay their taxes as well as their mortgage to their lender. In this case, both the government and the lender have a claim to the property — also known as a lien.

When buying foreclosures, always run a title check to see who has a lien on the property and to ensure the title is clean.

Stages of a foreclosure in Texas

The basic stages of foreclosure in Texas are pre-foreclosure, auction, and REO property. We recommend that you stick to pre-foreclosures and REOs, since auctions can be risky and tax-delinquent owners have a redemption period of up to two years.

Pre-foreclosure

Any sale that occurs between the breach letter and the foreclosure auction is considered a pre-foreclosure.

A homeowner receives a breach letter from their lender after they fail to make payments for one to three months.

If the borrower fails to catch up on payments or respond to the letter for another 60 to 120 days, they'll receive a Notice of Default and Intent to Accelerate. At this point, they'll have only a few weeks until the house goes to auction.

Foreclosure auction

Properties that don't sell in pre-foreclosure go to foreclosure auction. In Texas, these properties must be publicly advertised in local newspapers for at least three weeks before the auction.

Auctions occur the first Tuesday of every month, usually at the county courthouse or another publicly owned building.

If you want to participate, contact the county sheriff's office for instructions on how to register and bid. Ask about specific requirements such as minimum bids, bid increments, and payment types.

Here are links to some of the highest-volume counties in Texas:

• Bexar (San Antonio)
• Dallas
• Harris (Houston)
• Tarrant (Fort Worth)

Real estate owned (REO) foreclosures

If a property doesn't sell at auction, the lender or government takes possession of it. These properties are called REOs.

At this point, the lender or government won't be super flexible with negotiations, because they aren't as motivated to offload the property as a distressed seller. Their main goal is to recoup lost revenue.

Traditional financing is usually available for these properties, and they're generally priced at or slightly below market value.

Texas foreclosure laws for buyers

Texas is a moderately complex state when it comes to foreclosure laws. The state is mostly non-judicial, which means that most foreclosures don't need to be filed with the court or ruled on by a judge. This also means that the process to buy a foreclosure goes faster than the process in judicial states, which can take months or even years to complete.[6]

Deficiency judgements (also called short sales) are allowed in Texas, which means a house can be sold for less than what's owed on it.[7] You could get a good price on a short sale since sellers aren't required by law to get enough money to fully cover their debts. But you'll probably have to deal with the lender directly if you intend to buy a house as a short sale.

Texas also has a relatively long redemption period for tax-delinquent foreclosures, which can last up to two years. During that time, prior owners can pay off their delinquent taxes to regain possession of their property, regardless of any improvements you may have made to it.

Finally, Texas foreclosure buyers should keep tenant protection laws in mind. If you intend to live in the property, you need to give tenants 90 days to vacate the property.[8] If you intend to rent out the property, you must honor the terms of the lease for the current tenants.

Should I buy a foreclosed home in Texas?

Buyers looking for an affordable home that may need some work should consider buying a pre-foreclosure or REO in Texas. Generally, you should consider foreclosure auctions only if you're an experienced real estate investor or flipper.

For anyone who isn't experienced with real estate, inspecting a property and having it appraised are paramount to avoiding major pitfalls. Usually these aren't options when buying at an auction.

If you decide to buy a foreclosure, we recommend working with an experienced agent who can help you find great opportunities and avoid money pits.

Browse Clever's agent network to find the right realtor to guide you through the process.

FAQs about buying a foreclosed house in Texas

Why trust us?

Clever strives to provide the most up-to-date, accurate, and useful information available for our readers. We've done extensive research to verify this information, and we've consulted one of our top agents with experience buying foreclosures.

The author, Alex Long, has been investing in residential real estate since 2016 and has bought homes in various states across the U.S.

Related links

How to Find a Real Estate Agent That's Right for You

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

Buying a House in Texas in 8 Easy Steps

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Top 5 Best Real Estate Investment Markets in Texas

Looking to invest in Texas real estate? There are many options to choose from. Here are five great real estate investment markets in Texas to get you started.

The Ultimate Rental Property Calculator

Free rental property Income calculator that I used to model hundreds of deals and build a 1.5 million-dollar portfolio with great cash flow.

The post How to Buy a Foreclosed Home in Texas (2023 Guide) appeared first on Semya-Moya.

If you're a buyer looking to get a good deal on a property, buying a foreclosed home in Georgia might be for you.

Georgia is one of the fastest-growing states, but Atlanta has some of the highest foreclosure rates in the country, making it an especially good place to look for foreclosed properties.

⚡ Just looking for foreclosed homes in Georgia? Gain instant access to local listings before they hit the market on Foreclosure.com!

How to buy a foreclosed home in Georgia

1. Get pre-approved for financing

How to finance foreclosures in Georgia depends on the stage of foreclosure.

Generally, traditional financing is not an option at foreclosure auctions. Sometimes buyers borrow the money from a family member or from a hard money lender, but usually people purchase these properties with cash.

Financing a pre-foreclosure or REO foreclosure, on the other hand, is a lot like the process with a traditional property. With pre-foreclosures specifically, make sure you're scheduling the sale before the foreclosure deadline. You can use Quicken Loans’ automated tool to access customized help with foreclosure financing.

If you want to search for financing in Georgia on your own, you can explore other options. First-time home buyers can check their eligibility with Georgia Dream loans. You can also research homebuyer assistance programs through HOME Atlanta 4.0.

2. Hire a top Georgia realtor with foreclosure expertise

Buying a foreclosed home in Georgia can be a complicated process. That's why hiring an agent with experience buying foreclosures can make all the difference — they can help you navigate the additional risks, negotiate with motivated sellers, and avoid missing important deadlines.

It's possible that your agent will have a relationship with REO departments of local lenders or other entities who deal with foreclosed homes. Having the inside track could lead you to a great deal.

If you need help finding a realtor who specializes in foreclosures, Clever will match you with an experienced local agent who can help you find the right property. You can also get cash back when you close on your Georgia property.

Requesting agent matches is a free, no-obligation process. Simply fill out the form below to get agent recommendations sent straight to your inbox!

3. Find foreclosed homes in Georgia

If you're an inexperienced buyer, we recommend finding pre-foreclosures or REOs, since the process to buy these properties is similar to traditional home buying.

To simplify the process, consider signing up for a service like Foreclosure.com. You’ll get direct access to local foreclosure listings before they hit the mass market.

Free options for finding foreclosures are also available, but finding what you need is more difficult and the information is not always as timely or accurate compared to using a paid service.

4. Tour foreclosures in person

A huge benefit to buying pre-foreclosures or REOs is that you can tour the property before making an offer (this isn't usually possible with auctioned properties). If you're new to renovating and rehabbing properties, make an effort to see a property in person before submitting an offer. You might not be permitted to, but it never hurts to ask.

While you may not have time to order an inspection, you can at least bring a contractor to tour the home with you. You'll get a sense of any major flaws with the property — and what they'll cost to fix. If your goal is to flip the house, this is crucial for determining your after repair value (ARV).

» LEARN: How ARV works

5. Submit offers

Making an offer on a pre-foreclosure is a lot like making an offer on a conventional home, except the seller is highly motivated and may be trying to close before a foreclosure deadline. To make an offer appealing to this type of seller, include a fast close date.

For an REO, there are usually more specific rules to submit an offer. Each lender has a slightly different process, but you'll want a letter of pre-approval, and you should always follow the lender's instructions. A good agent can help you through this process.

Auctions have their own set of rules for submitting offers. Georgia buyers must submit bids in person or online, depending on the property being auctioned. The auction will have pre-determined bid increments, a minimum bid, and occasionally a buyer's premium (an additional fee).

Buyers should contact the trustee running the auction to ensure they have all these details before submitting an offer.

6. Conduct due diligence on the property

When you buy a foreclosed home in Georgia, get the property inspected and conduct a title search.

Georgia is a buyer beware state, meaning sellers aren't required to disclose everything wrong with the property. This makes due diligence even more important. Inspections will help you avoid major issues with the property that may be hard to see with a simple walk-through.

Since foreclosures exist only when bills aren't paid, there's additional risk of claims against the title. Conducting a title search will ensure that there are no liens against the property, so you can rest assured that the home is yours once you've closed on it.

» MORE: Learn how inspections work and what happens after

With auctions, inspections and property viewings are generally not allowed. Your due diligence is mostly limited to checking for a clear title, driving by the property to assess the condition of the outside and the neighborhood, and preparing to make an offer at the auction.

7. Get the home appraised if you plan to finance it

When financing a home, lenders want to know that they're not taking on too much risk by lending you more than the home is worth.

You'll need to get the property appraised to determine its fair market value. Lenders will generally have appraisers they work with, so you'll just need to contact one of their appraisers, schedule a visit to the property, and notify the seller.

» MORE: Find out what appraisals are and if you need one

If the appraisal comes in low, you'll need to pay for the difference out of pocket. For example, if you offer $310,000 for a mid-priced Georgia home and it appraises at $300,000, then the lender will only finance $300,000. You'll need to cover the remaining $10,000 or renegotiate the sale price.

8. Close on the purchase

With an auction, you'll need cash or certified funds (i.e., a cashier's check) to close on the property and receive the title. Funds are due in full at the time you win the property. The contract writer will accept your payment and government-issued ID and then complete a certificate of sale. The deed will then be transferred and mailed to you.

The closing process for pre-foreclosures and REOs is similar to closing on conventional homes — you go to a title company, fill out the paperwork, and pay the seller for the property.

The title company will tell you in advance what's expected from you, but it helps to have an expert guide you through the process. When you use an agent recommended by Clever, you'll have the peace of mind knowing an experienced agent has your back — and you could even get cash back at closing!

What is a foreclosed home?

When a homeowner fails to pay their debt, the party who is owed money can take possession of the property. This is called foreclosure.

The term "foreclosure" is often used more generally for a property in any stage of the foreclosure process: pre-foreclosure, auction, and real estate owned (REO).

Pros and cons of buying a Georgia foreclosure

The primary benefit of buying a foreclosed home in Georgia is the likely discounted price. Buyers also appreciate the increased inventory to choose from and the possibility of quickly gaining equity by renovating the property.

The major risks with foreclosures include damage to the property and title issues.

Pros

✅ Lower purchase price

The major benefit of buying a foreclosed home is the possibility of getting it for below market value. Most sellers are in a tight place financially, so savvy buyers can leverage that to negotiate lower sale prices.

✅ Increased inventory

In a growing state like Georgia, any opportunity to add homes to your search increases the chances of finding the right property. Considering foreclosures is a good way to expand your search.

✅ Room to build in equity

Since many foreclosures have issues or have been neglected in some way, you can often build equity by renovating or repairing the home.

For example, you might buy a foreclosure for $150,000 and spend $25,000 renovating it, increasing its worth to $190,000 — that's $15,000 of equity you just created!

✅ Faster buying process than some states

Since Georgia is a non-judicial state, the foreclosure process is much quicker and smoother than in judicial states. Buying a foreclosure is also significantly less complicated.

✅ No redemption period

No redemption period means you can rest assured that when you buy a foreclosed home, it's yours — assuming you ran a title check and it came back clean.

Cons

🚫 Damaged property

Many foreclosures have been vacant or neglected for an extended period, so they may have substantial damage that needs repair. Sometimes distressed sellers intentionally damage property on the way out because they're angry about being forcefully removed from their home.

🚫 Ethical concerns

Some homebuyers feel like they're taking advantage of someone's misfortune when they buy a foreclosure. In this case, the peace of mind outweighs the potential profit you could achieve by purchasing one of these homes.

🚫 Title issues

For a property to be foreclosed, a homeowner must fail to repay a debt for which the property is acting as collateral. This can apply to more than one kind of debt.

For example, a homeowner could fail to pay their taxes as well as their mortgage to their lender. In this case, both the government and the lender have a claim to the property — also known as a lien.

When buying foreclosures, always run a title check to see who has a lien on the property and to ensure the title is clean.

🚫 Inheriting tenants

Due to the Protecting Tenants at Foreclosure Act of 2009, federal law requires you to honor the lease for tenants of a foreclosed property you buy and intend to rent out. If you plan to live there, you need to give tenants 90 days to vacate.

🚫 Historic properties

Georgia has a lot of historic homes throughout the state. While you may get a good deal on a foreclosed property, if it's in a historic area, the renovations may be more costly than you anticipated or require additional permitting.

Stages of a foreclosure in Georgia

The basic stages of foreclosure in Georgia are pre-foreclosure, auction, and REO property. We recommend sticking to pre-foreclosures and REOs if you're not a professional investor, since auctions can be risky and cash-intensive.

Pre-foreclosure

The pre-foreclosure process begins after a borrower has missed multiple months of payments and is issued a notice of default by their lender. Georgia is generally a non-judicial state, meaning that lenders can foreclose on properties with delinquent payments much quicker than in judicial states.

Foreclosure auctions can take place in as little as 60 days after the notice of default is issued. This relatively short time frame means you'll have to move fast if you want to buy a pre-foreclosure.

You'll need to get pre-approved for financing before finding a pre-foreclosure to buy, or you'll need non-traditional financing that processes faster than traditional loans.

Foreclosure auction

Properties not sold in pre-foreclosure go to foreclosure auction. Georgia foreclosure auctions must be publicly advertised in local newspapers for at least four consecutive weeks before the auction takes place.

Auctions are held the first Tuesday of each month between 10 a.m. and 4 p.m., and the property is sold to the highest bidder. Depending on the auction, buyers bid in person or online.

Funds must be cash or certified funds, and they're due before the winner receives the title. For more detailed instructions, read the full description for the auction either in the newspaper advertisement or on listing sites like auction.com.

Some of the most popular areas for foreclosure auctions include:

• Fulton County (Atlanta)
• Richmond County (Augusta)
• Muscogee County (Columbus)

Real estate owned (REO) foreclosures

If a property doesn't sell at auction, the lender or government takes possession of it. These properties are called REOs.

At this point, the lender or government won't negotiate much. They're not as motivated to offload the property as a distressed seller, and their main goal is to recoup lost revenue.

That said, traditional financing is usually available for these properties, and they're generally priced at or slightly below market value.

Since REOs have failed to sell in both the pre-foreclosure and auction stages, there's likely something wrong with them. Approach these properties with the expectation that they'll require some work.

Georgia foreclosure laws for buyers

Georgia has favorable legal proceedings for buyers of foreclosures. Since most foreclosures are non-judicial — meaning the lender does not have to sue the borrower in court and have a judge rule to foreclose — the process is significantly easier and faster than in judicial states.[9]

There's no redemption period for Georgia foreclosures either, which means there's no risk of a previous owner reclaiming the property after you close on your purchase.[6] That said, you still need to run a title check to ensure no one else has a legitimate claim to that property, no matter what stage of foreclosure the property is in.

Since deficiency judgments are allowed with foreclosed properties in Georgia, there's a possibility that you could acquire a property for less than the current debt against it — also called a short sale.[2] If you're buying a short sale property, you'll likely need to deal directly with the lender and get their approval.

Occasionally, lenders will allow you to assume the current loan on the property, which means you'll be responsible only for whatever is still owed. Consult the seller and lender directly if you want to explore this possibility.

Georgia foreclosure buyers should also keep tenant protection laws in mind. If you intend to live in the property — also called owner occupying — you need to allow current tenants 90 days to vacate the property. If you intend to rent out the property, you must honor the terms of the lease for the current tenants.[4]

Should I buy a foreclosed home in Georgia?

Buyers everywhere should approach foreclosures with caution, but Georgia is a particularly good state for going that route if you choose it. Rapid growth and high delinquency rates in areas like Atlanta increase the chances of finding a good deal and getting a solid return on investment — regardless of whether you flip, rent, or occupy it.

The fact that Georgia is a non-judicial state and has no redemption period also makes the process of buying foreclosed homes much more manageable.

That said, we recommend sticking to pre-foreclosures or REOs if you're not a seasoned flipper or investor. For these stages of foreclosure, property inspections and appraisals are allowed, which helps buyers who aren't experienced with real estate to avoid major pitfalls.

If you decide to buy a foreclosure, consider working with an experienced agent who can help you get the first crack at great opportunities and avoid money pits. Talk to one of Clever's recommended agents to see how they can help you find your next home!

Why trust us?

Clever always tries to provide the most up-to-date, accurate, and useful information available for our readers. We did extensive research to locate and verify this information, and we also consulted one of our top agents who has experience buying foreclosures.

The author, Alex Long, has been investing in residential real estate since 2016 and has bought homes in various states across the U.S.

FAQs about buying a foreclosed house in Georgia

Related links

How to Find a Real Estate Agent That's Right for You

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

8 Steps to Buying a House in Georgia

From saving for a down payment to reaching the closing table, learn how to navigate the key steps to buying a house in Georgia.

Top 5 Best Real Estate Investment Markets in Georgia

Looking for a handsome ROI on your real estate investment? Check out the top real estate investment markets in Georgia here.

The Ultimate Rental Property Calculator

Free rental property Income calculator that I used to model hundreds of deals and build a 1.5 million-dollar portfolio with great cash flow.

The post 8 Steps to Buy a Foreclosed Home in Georgia (2023 Guide) appeared first on Semya-Moya.

Regardless of how experienced you are in real estate, at some point you might have wondered if buying a foreclosure in Ohio is a good idea.

In many cases, it can be! Buying Ohio foreclosures can help you get a property for under market value, which you can then flip for a profit or live in. And the fact that Ohio consistently has high foreclosure rates means you're more likely to find a great deal.

⚡ Just looking for foreclosed homes in Ohio? Gain instant access to local listings before they hit the market on Foreclosure.com!

How to buy a foreclosed home in Ohio

1. Get pre-approved for financing

When purchasing a foreclosed home, the type of financing you need depends on the stage of foreclosure. Foreclosure auctions typically require buyers to pay cash. But you can finance a pre-foreclosure or REO property using a traditional home loan.

If you don't have the cash to purchase a foreclosure outright, you'll need to show proof of financing from another source — such as a pre-approval letter from a lender.

A pre-approval letter indicates how much a lender would be willing to let you borrow based on your income, assets, and credit score. Most sellers won't take your offer seriously without one, especially if you're looking to buy an REO.

If you're curious how much you might qualify for, you can get a fast, no-obligation pre-approval using Quicken Loans' free automated tool. Simply fill out some basic financial information, and you'll get a professional opinion of your borrowing power.

A pre-approval letter won't obligate you to work with a specific lender, and it'll give sellers the assurance that they're dealing with a qualified borrower. When multiple offers are on the table, proof of funding can make the difference between winning the deal or not. Once your offer is accepted, you're free to shop around for the best loan.

If you're a first-time buyer, you can also look for down payment assistance programs you might qualify for.

2. Hire a top Ohio realtor with foreclosure expertise

Purchasing a foreclosure can be complex. If you're unfamiliar with the process, find an agent with experience in the foreclosure market.

An experienced agent can point out potential risks, especially when the property needs work or the seller owes more on their mortgage than the home is worth. They'll also help you navigate the paperwork and negotiations. In some cases, your agent may have relationships with REO specialists or other lenders who deal in foreclosures. This can give you an inside track on properties before they hit the market.

If you want to find a realtor with foreclosure expertise in Ohio, try a free service like Clever. Clever will match you with top-performing agents in your area. You could even get cash back when you close on your home!

Finding an agent through Clever is completely free, and there's no pressure to commit. Simply fill out the form below to compare agent recommendations.

3. Find foreclosed homes in Ohio

If you're new to buying foreclosures, you should probably limit your search to pre-foreclosures and REOs. For these properties, the purchase process is similar to a traditional home sale, allowing you to inspect and appraise the property before you buy. At a foreclosure auction, you'd likely compete with experienced investors and bid on homes sight unseen.

If you're serious about buying a foreclosure, consider signing up for an account with Foreclosure.com. This platform gives you access to the most comprehensive foreclosure marketplace on the internet — and often has new pre-foreclosure and REO listings before they hit a wider market. If you want to "test before you buy," you can get a free preview before proceeding to a monthly subscription.

4. Tour foreclosures in person

If you decide to stick with Ohio pre-foreclosures and REOs, one major benefit is the ability to see homes in person. Auctioned properties are usually bought sight unseen and as is.

When touring a property, look for red flags. These might include significant damage to the foundation, evidence of harmful substances, or multiple distressed properties in the area. You can get an inspection later to get a more comprehensive idea of issues with the property, but this initial visit will tell you if it's even worth pursuing.

If you're an investor, you should probably have a contractor assess how much work they think needs to be done on the home and what it'll cost. This step is crucial for determining the after repair value (ARV) of the home, which can help you determine your potential profit when reselling the home.

» LEARN: How ARV works

5. Submit an offer

Making an offer on a pre-foreclosure is a lot like making an offer on a conventional home, except the seller is highly motivated and may be trying to close before a foreclosure deadline. Including fast close dates is probably the best way to make these offers appealing to sellers.

REOs usually have more specific rules for submitting offers. Each lender treats this a bit differently, but you'll want a letter of pre-approval, and you should always follow their instructions for submitting offers. A good agent can help you through this process.

Auctions have their own set of rules for submitting offers. Ohio buyers must register on the county sheriff's website and submit bids online. Each auction will have pre-determined bid increments, a minimum bid, and occasionally a buyer's premium (an additional fee). You're also required to submit a deposit at least two days before the auction.

Buyers should contact the sheriff or private selling officer (the person running the auction) to ensure they have all these details correct before submitting an offer.

6. Conduct due diligence on the property

When buying a foreclosure in Ohio, it's extremely important to protect yourself from additional risk. Getting the property inspected and conducting a title search are two of the most effective ways to protect you from most legal and physical issues.

» MORE: Learn how inspections work and what happens after

You usually aren't allowed to tour or inspect an auctioned foreclosure. Most of the due diligence for these properties involves driving by the property, researching the tax history, and learning about the surrounding area. Ultimately, the discount on these properties is largely the result of the substantial risk buyers take in purchasing them.

7. Get the home appraised if you plan to finance it

Whenever a lender loans someone money to buy a property, the lender want assurances that their money is being invested wisely. That's why they usually require a formal appraisal to determine the property's fair market value.

» MORE: Find out what appraisals are and if you need one

If the appraisal comes in low, you'll need to come out of pocket for the difference. For example, if you offer $215,000 for a mid-priced Ohio home and it appraises at $210,000, the lender will only finance $210,000. You'll need to cover the remaining $5,000 or renegotiate the sale price.

8. Close on the purchase

The closing process for pre-foreclosures and REOs is similar to closing on conventional homes: you go to a title company, fill out the paperwork, and pay the seller for the property.

The title company will tell you in advance what's expected from you, but it helps to have an expert on your side to guide you. If you use an agent recommended by Clever, you'll have peace of mind knowing an experienced agent has your back — and you could even get cash back at closing!

With an auction, you'll first need to submit a winning bid online for a property. Within the next seven days, the deed will be delivered to the sheriff's office. You must pay for the property in full within 30 days of the sheriff receiving the deed, after which the sheriff has another 14 days to record the deed. You won't be fully closed on your property until the sheriff record's the deed. The entire closing process for auctioned properties can take up to two months.[10]

What is a foreclosed home?

When a homeowner fails to pay their mortgage or debts that use the house as collateral, the lender can take possession of the property. This is called a foreclosure.

The term "foreclosure" is often used more generally to apply to a property in any stage of the foreclosure process: pre-foreclosure, auction, and real estate owned (REO).

Pros and cons of buying a Ohio foreclosure

The primary benefit of buying a foreclosed home in Ohio is the likely discounted price. Buyers also appreciate the increased inventory to choose from and the possibility of quickly gaining equity by renovating the property.

The major risks with foreclosures include damage to the property and title issues.

Pros

✅ Lower purchase price

You could get a foreclosed home for below market value. Most sellers are in a tight place financially, and savvy buyers can leverage that to negotiate lower sale prices.

✅ Increased inventory

In a competitive market, any opportunity to add homes to your search increases the chances of finding the right property. Considering foreclosures is a good way to expand your search.

✅ Room to build equity

Since many foreclosures have issues or have been neglected in some way, there's often an opportunity to build equity by renovating or repairing the home.

For example, you might buy a foreclosure for $150,000 and spend $25,000 renovating it, then it could be worth $190,000. That's $15,000 of equity you just created!

✅ Short sales

Ohio allows for deficiency judgments (or short sales), which means a property can be sold for less than is owed on it if the lender agrees to the sale. This can be a good opportunity to pick up a home for less than its fair market value.

✅ Lender pays off debts

Lenders are required to pay off all debts on a property before they can foreclose and resell that property. This means you'll only be responsible for paying the agreed on sale price and any fees associated with buying the home.

Cons

🚫 Damaged property

Many foreclosures have been vacant or neglected for an extended period, so they may have substantial damage that needs repair. Sometimes distressed sellers intentionally damage property on the way out because they're angry about being forcefully removed from their home.

🚫 Ethical concerns

Some home buyers feel like they're taking advantage of someone's misfortune when they buy a foreclosure. In this case, peace of mind outweighs the potential profit you could get by purchasing one of these homes.

🚫 Title issues

For a property to be foreclosed, a homeowner must fail to repay a debt for which the property is acting as collateral. This can apply to more than one kind of debt.

For example, a homeowner could fail to pay their taxes as well as their mortgage to their lender. In this case, both the government and the lender have a claim to the property — also known as a lien.

When buying foreclosures, always run a title check to see who has a lien on the property and to ensure the title is clean.

🚫 Inheriting tenants

Due to the Protecting Tenants at Foreclosure Act of 2009, you're required by federal law to honor the lease for tenants in a property if you buy a foreclosure and intend to rent it out. If you plan to live there, you need to give tenants 90 days to vacate.[4]

🚫 Redemption period

In Ohio, delinquent borrowers can redeem their property and regain possession of it any time leading up to the confirmation of sale, which can take place up to 30 days after a foreclosure auction. This means you'll have to wait a while before you know for sure you own the property.

Stages of a foreclosure in Ohio

The basic stages of foreclosure in Ohio are pre-foreclosure, auction, and REO property. We recommend that you stick to pre-foreclosures and REOs if you're not a professional investor, since auctions can be risky and cash-intensive.

Pre-foreclosure

The pre-foreclosure process begins after a borrower misses multiple months of payments and is issued a notice of default by their lender. Ohio is a judicial state, meaning that lenders must file a lawsuit against delinquent borrowers and a judge must rule in their favor before the foreclosure process can proceed.

You'll want to be pre-approved for financing before finding a pre-foreclosure you want to buy, or you'll need non-traditional financing that processes more quickly than traditional lenders. Being able to close fast enough to beat the foreclosure deadline is the key to successfully buying pre-foreclosures.

Foreclosure auction

Properties that don't sell in pre-foreclosure go to foreclosure auction. Ohio foreclosure auctions must be publicly advertised in local newspapers for at least three consecutive weeks before the auction takes place.

Ohio auctions are conducted by either the county sheriff's office or a private selling officer, and they're conducted online.

You must submit a deposit between $2,000–5,000 to whoever is running the auction at least two days before it starts. If you submit the winning bid, it'll take approximately two months to complete the sale. The minimum bid on Ohio foreclosures is two-thirds the appraised value of the property.[10]

The funds to close must be either cash or certified funds, and they're due within 30 days of confirmation of the sale. For more detailed instructions, you'll need to read the full description either in the newspaper advertisement or on listing sites like auction.com.

Some of the most popular counties for foreclosure auctions include:

• Cuyahoga
• Preble
• Lake
• Marion
• Trumbull

Real estate owned (REO) foreclosures

If a property doesn't sell at auction, the lender or government takes possession of it. These properties are called REOs.

REOs are good properties for buyers who don't want to take advantage of distressed sellers and don't want the risk of buying site-unseen homes at an auction. That said, you can face significant delays when dealing with REOs, so these properties aren't for buyers in a hurry.

Since REOs have failed to sell in either the pre-foreclosure or auction stages, it's likely there's something wrong with them. You should expect having to do some work on the property.

Ohio foreclosure laws for buyers

From a buyer's perspective, foreclosure laws in Ohio are a mixed bag.

One positive is that Ohio allows for deficiency judgments, or short sales, which increases the possibility of finding a decent property for under fair market value.[2]

Ohio also requires that lenders pay off any debts before selling a property, which makes REOs and auctioned properties less susceptible to lien and title issues.

That said, there are a number of hurdles that make it harder for buyers to get a great deal on a foreclosure. For example, Ohio requires that foreclosed homes be sold for no less than two-thirds of the assessed value, which places a limit on how much you can save on the purchase price.[11]

Ohio also has a redemption period that allows the former owners to pay their debts and the fees associated with foreclosure to regain possession of the property. This means you could win a house at a foreclosure auction only to have it go back to the original owner two weeks later. The redemption period ends when the sale has been confirmed, which can take up to 30 days from the sale date.[10]

Finally, even if you manage to acquire a foreclosed home, you may have to deal with tenants who currently reside there. According to federal law, you must honor the terms of their lease if you intend to rent out the property, or you must give them 90 days to vacate if you plan to live there.[4]

Should I buy a foreclosed home in Ohio?

The decision of whether to buy a foreclosed house depends on your circumstances and the type of foreclosure you're interested in.

We recommend that buyers in a hurry focus on pre-foreclosures, since these properties are more likely to close quickly and allow conventional financing.

Buyers who want to work with professionals should consider REOs. These transactions go slower, but REO departments handle foreclosures all the time and have a tried-and-true method of selling them.

Unless you're a professional investor, flipper, or contractor, we recommend avoiding auctions. Auctioned foreclosures usually require substantial cash up front and may need significant rehabbing. The fact that you may end up inheriting tenants with the property also makes these more appropriate for real estate professionals.

If you decide to buy a foreclosure, work with an experienced agent who can help you find great opportunities and avoid money pits.

Browse Clever's agent network to find a realtor who can guide you through the process.

Why trust us?

Clever strives to provide the most up-to-date, accurate, and useful information available for our readers. We've done extensive research to locate and verify this information, and we've also consulted one of our top agents who has experience buying foreclosures.

The author, Alex Long, has been investing in residential real estate since 2016 and has bought homes in various states across the U.S.

FAQs about buying a foreclosed house in Ohio

Related links

How to Find a Real Estate Agent That's Right for You

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

How to Buy a House in Ohio [8-Step Guide for 2023]

From saving for a down payment to reaching the closing table, learn how to navigate the key steps to buying a house in Ohio.

Top 5 Best Real Estate Investment Markets in Ohio

Ohio’s real estate is on the up and up. Here’s where to find the best real estate investment markets in Ohio to maximize your ROI.

The Ultimate Rental Property Calculator

Free rental property Income calculator that I used to model hundreds of deals and build a 1.5 million-dollar portfolio with great cash flow.

The post 8 Steps to Buy a Foreclosed Home in Ohio (2023 Guide) appeared first on Semya-Moya.

On the path to homeownership, you might wonder if buying a foreclosure in Massachusetts is a good idea.

Buying a foreclosure could be a way for you to find an affordable home. The median home price climbed to $589,000 in 2022, but you could pay below average on a foreclosure. This is especially appealing in a growing state like Massachusetts, where competition can be tough, making deals hard to find.

That said, buying a Massachusetts foreclosure is a complex process with many pitfalls to avoid.

Fortunately, Semya-Moya can connect you with an expert agent will can show you how to buy a foreclosed home in Massachusetts. You could even get cash back for qualified purchases!

What is a foreclosed home?

A foreclosure happens when a homeowner fails to pay their mortgage or other debts that use the house as collateral. The lender takes possession of the borrower's home as compensation.

The term "foreclosure" is often used more generally to apply to a property in any stage of the foreclosure process: pre-foreclosure, auction, and real estate owned (REO).

How to buy a foreclosed home in Massachusetts

1. Get pre-approved for financing

In the foreclosure market, the type of financing you need depends on the stage of foreclosure. For homes sold at auction, you generally need to pay in cash. But you can buy bank-owned properties and pre-foreclosures with traditional financing.

Regardless of the stage of foreclosure, good deals get snatched up quickly — often by cash investors. If you don't have the cash to buy a foreclosure property outright, be prepared to show proof of financing from another source. The best place to start is with a pre-approval letter from a lender.

A pre-approval letter states how much you're qualified to borrow based on a lender's review of your credit score and finances. Your offer isn't likely to be taken seriously without one.

To get a head start on the pre-approval process, you can use Quicken Loans' easy automated tool. Simply answer a few basic financial questions and get a professional opinion of how much you're qualified to borrow — with no obligation to commit to a lender. You can also check your eligibility for down payment assistance programs in your area.

While a pre-approval letter doesn't rope you into working with a specific lender, it does provide sellers with the reassurance that you can secure the funding to back your offer. In a competitive offer situation, proof of funding can make the difference between having the winning bid or not.

You can explore other affordable mortgage and down payment assistance options through MassHousing.

2. Hire a top Massachusetts realtor with foreclosure expertise

Buying a foreclosure can be a difficult, drawn-out process. Having an experienced agent who knows how to navigate the Massachusetts foreclosure market can make a world of difference — especially when it comes to pointing out potential red flags, decoding complicated paperwork, and ensuring you don't overpay.

Agents specializing in foreclosures may even have established relationships with the REO departments of local lenders. This can give you the inside track on foreclosed homes that others might not know about.

If you're looking for a Massachusetts realtor with foreclosure experience, Clever's agent matching team can connect you. As a buyer, you get your pick of top-performing agents in your area, plus cash back when you close on your home.

There's no cost and zero pressure. Simply fill out the form below, and we'll send you the profiles of agents who match your needs. You can see what each agent has to offer and decide to move forward (or not) from there.

3. Find foreclosed homes in Massachusetts

Unless you're an experienced investor with the cash to take to an auction, your best bet for finding foreclosure properties is through pre-foreclosure and REO listings. However, competition for these properties can be steep — especially once they reach the multiple listing service (MLS) and other listing sites like Zillow.

If you want to get ahead of competitors, services like Foreclosure.com can give you access to local foreclosure listings — including pre-foreclosures and government-owned properties — before they hit the market.

While there's a monthly fee for using the service, Foreclosure.com has the largest and most up-to-date database of foreclosure properties on the internet, with listing information updated twice daily. You can access the database during a seven-day free trial before deciding to pay for the service.

If you're not a real estate professional, we recommend you stick to pre-foreclosures and REOs. These are more like traditional homes and involve less risk since you can usually tour them and get them inspected.

4. Tour foreclosures in person

Seeing the property yourself will help you know what you're signing up for. This step is especially important since foreclosures are usually sold as is.

During the tour, keep an eye out for any deal breakers such as a cracked foundation, dilapidated roof, or faulty major appliances. If you see anything you don't want to fix or pay for, you can end the tour and move on to another property.

If you're buying the foreclosure as an investment, you could bring in a contractor to tour with you. They can give you a sense of what kind of work you'll need to do and how much it'll cost. For flippers and investors, this is a crucial step to figuring out the after repair value (ARV).

» LEARN: More about how ARV works

5. Submit offers

In Massachusetts, making an offer on an REO or pre-foreclosure is similar to the process for a conventional purchase. You'll submit an offer, negotiate the sale price and terms, and set a closing date.

Since pre-foreclosure owners are motivated sellers, you're more likely to get your offer accepted if you're able to close quickly.

REO departments are not as crunched for time, and they have more specific rules about how to submit offers and negotiate. You can expect less of a discount on REOs than pre-foreclosures, especially when the lender hasn't possessed the property for very long. A good agent can help you navigate the complicated process of making an offer on an REO.

For in-person auctions, you'll submit your bids in person by raising either your hand or a bidding card for the auctioneer to see. Some auctions allow absentee bids, which you submit in writing to the auctioneer before the auction. For specific bidding instructions, read the auction advertisement for the property you're interested in. If you can't find the details you need in the advertisement, contact the person conducting the auction.

6. Conduct due diligence on the property

Often foreclosures have some kind of physical or legal issues. It's extremely important to conduct due diligence by inspecting the property and running a title search. These measures will shield you from unexpected issues with the property.

» MORE: Learn how inspections work and what happens after

With auctions, inspections and property viewings are generally not allowed. Your due diligence will mostly be limited to checking for a clear title, driving by the property to assess the condition of the outside and neighborhood, and preparing to make an offer at the auction.

7. Get the home appraised if you plan to finance it

If you're borrowing money to buy a foreclosure, you'll need an appraisal to determine the fair market value. An appraisal tells the lender how much to lend you for the property.

» MORE: Find out what appraisals are and if you need one

If the appraisal comes in low, you'll need to come out of pocket for the difference. For example, if you offer $510,000 for a mid-priced Massachusetts home and it appraises at $500,000, the lender will only finance $500,000. You'll need to cover the remaining $10,000 or renegotiate the sale price.

8. Close on the purchase

The closing process for pre-foreclosures and REOs is similar to closing on conventional homes. You go to a title company, fill out the paperwork, and pay the seller for the property.

The title company will tell you in advance what's expected from you, but it helps to have an expert on your side to guide you. If you use an agent recommended by Clever, you'll have the peace of mind knowing an experienced agent has your back — and you could even get cash back at closing!

If you're closing on an auctioned foreclosure, you need to pay for the house in full and file the deed at the Registry of Deeds. You have 30 days to complete these steps, otherwise you lose ownership of the property and any deposit you submitted.[12]

Pros and cons of buying a Massachusetts foreclosure

The primary benefit of buying a foreclosed home in Massachusetts is the likely discounted price. Buyers also appreciate the increased inventory to choose from and the possibility of quickly gaining equity by renovating the property.

The major risks with foreclosures include damage to the property and title issues.

Pros

✅ Lower purchase price

The major benefit of buying a foreclosed home is the possibility of getting it for below market value. Most sellers are in a tight place financially, so savvy buyers can leverage that to negotiate lower sale prices.

✅ Increased inventory

In a competitive market, any opportunity to add homes to your search increases the chances of finding the right property. Considering foreclosures is a good way to expand your search.

✅ Room to build equity

Since many foreclosures have issues or have been neglected in some way, there's often an opportunity to build equity by renovating or repairing the home.

For example, you might buy a foreclosure for $200,000 and spend $25,000 renovating it, and it could be worth $250,000 after all the work is done. That's $25,000 of equity you just created!

✅ Short sales

Massachusetts allows for deficiency judgments, which means a property can be sold for less than is owed on it if the lender agrees to the sale — also called a short sale. This can be a good opportunity to pick up a home for less than its fair market value.

✅ No redemption period

Not having a redemption period means you can rest assured that when you buy a foreclosed home, it's yours — assuming you ran a title check and it came back clean.

Cons

🚫 Damaged property

Many foreclosures have been vacant or neglected for an extended period, so they may have substantial damage that needs repair. Sometimes distressed sellers intentionally damage property on the way out because they're angry about being forcefully removed from their home.

🚫 Ethical concerns

Some home buyers feel like they're taking advantage of someone's misfortune when they buy a foreclosure. In this case, the peace of mind outweighs the potential profit you could get by purchasing one of these homes.

🚫 Title issues

For a property to be foreclosed, a homeowner must fail to repay a debt for which the property is acting as collateral. This can apply to more than one kind of debt.

For example, a homeowner could fail to pay their taxes as well as their mortgage to their lender. In this case, both the government and the lender have a claim to the property — also known as a lien.

When buying a foreclosure, always run a title check to see who has a lien on the property and to ensure the title is clean.

🚫 Inheriting tenants

Due to the Protecting Tenants at Foreclosure Act of 2009, you're required by federal law to honor the lease for tenants in a property if you buy a foreclosure and intend to rent it out. If you plan to live there, you still need to give tenants 90 days to vacate.[4]

🚫 Buyer beware

Massachusetts is a buyer beware state, meaning that sellers of foreclosures aren't obligated to disclose all information about what is wrong with the property. This creates a greater risk for buyers, since there could be hidden issues and expenses.

Stages of a foreclosure in Massachusetts

The basic stages of foreclosure in Massachusetts are pre-foreclosure, auction, and REO property. We recommend that you stick to pre-foreclosures and REOs if you're not a professional investor, since auctions can be risky and cash-intensive.

Pre-foreclosure

The pre-foreclosure process begins after a borrower has missed multiple months of payments and is issued a notice of default by their lender. Massachusetts is a non-judicial state, meaning that lenders can foreclose properties with delinquent payments much quicker than in judicial states.

In Massachusetts, a homeowner gets 150 days to catch up on their loan payments. The time can be cut down to 90 days if the homeowner doesn't respond to the lender's notification of intent to foreclose.[13]

Being able to close fast enough to beat the foreclosure deadline is the key to successfully buying pre-foreclosures. You'll want to be pre-approved for financing before you find a pre-foreclosure you're interested in, or you'll need non-traditional financing that processes faster than traditional loans.

Foreclosure auction

If a property doesn't sell during the pre-foreclosure period, it goes to foreclosure auction. In Massachusetts, foreclosure auctions must be advertised in a local newspaper for at least three consecutive weeks before the auction takes place.

Auctions can take place at the county courthouse or at the property itself, and they're conducted by a licensed auctioneer.

If you submit the winning bid, you have 30 days to register the deed and pay in full for the property.

Counties where foreclosure auctions are common include:

• Essex
• Middlesex
• Norfolk
• Suffolk
• Worcester

Real estate owned (REO) foreclosures

If a property doesn't sell at auction, the lender or government takes possession of it. These properties are called REOs.

REOs are good for buyers who don't want to take advantage of distressed sellers and who want to see the property before buying. That said, buyers can face significant delays when purchasing these properties, so if you're in a hurry to buy a home, don't go for an REO.

Since REOs have failed to sell in both the pre-foreclosure and auction stages, it's likely there's something wrong with them. Approach these properties with the expectation that they'll require some work.

Massachusetts foreclosure laws for buyers

From a buyer's perspective, the foreclosure laws in Massachusetts are a mixed bag.

One the one hand, Massachusetts is a non-judicial foreclosure state, meaning lenders don't have to file a lawsuit to foreclose the property. This makes the process faster and less complicated.[2]

There's also no redemption period, so when you close on a foreclosure, it's yours and can't be taken back by the original owner.[2]

That said, Massachusetts is one of the few buyer beware states, which means sellers are not obligated to disclose everything wrong with the property like most states do.[14]

Federal law requires a buyer of a foreclosure to honor the lease for tenants when the buyer intends to rent out the property. If the buyer intends to live in the foreclosed home, they must give tenants 90 days to vacate.[4] However, Massachusetts also requires buyers to evict anyone wrongfully occupying an auctioned property. If a buyer doesn't carefully follow the instructions, they're liable to being sued for up to three years by the people evicted.[13]

Should I buy a foreclosed home in Massachusetts?

Buying a Massachusetts foreclosure can be a good idea if you get it at the right stage for the right reasons.

Pre-foreclosures are good opportunities to find a property in reasonable shape for a discount. You'll need to be willing to close relatively quickly, but you could get a great deal without significantly more risk or effort than buying a conventional home.

An REO can be a good option if you want to work with professionals and minimize the feeling that you're profiting from someone's distress. That said, REOs likely need significant work, and the process of buying them can take a while.

Auctions are usually best left to investors and contractors. These properties come with significant risk, are cash intensive, and often require lots of knowledge and labor. If you don't mind spending a lot of money on a high-risk, high-reward investment, these could be worth exploring.

If you decide to buy a foreclosure, we recommend working with an experienced agent who can help you find great opportunities and avoid money pits.

Tap into Clever's agent network to find the right realtor to help you buy your next home.

Why trust us?

Clever strives to provide the most up-to-date, accurate, and useful information available for our readers. We've done extensive research to locate and verify this information, and we've also consulted one of our top agents who has experience buying foreclosures.

The author, Alex Long, has been investing in residential real estate since 2016 and has bought homes in various states across the U.S.

FAQs about buying a foreclosed house in Massachusetts

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The post 8 Steps to Buy a Foreclosed Home in Massachusetts (2023 Guide) appeared first on Semya-Moya.

The average home buyer in Massachusetts spends between $43,979 and $158,269 on home buying costs when purchasing a $583,964 home — the state median value.

And after you manage to close on your home, you'll still need reserves to ensure you can pay all the ongoing costs of homeownership.

Working with Semya-Moya is a great way to ensure you manage the home buying expenses wisely and have a positive home buying experience. Working with a Clever agent means you'll not only get great service from start to finish, but you could also be eligible for cash back after closing!

Average cost to buy a house in Massachusetts

If you're trying to figure out how much it costs to buy a house in Massachusetts, you should start with the down payment. That's likely to be your largest expense, but it also has the largest possible range of options.

Besides the down payment, you also need to account for closing costs, appraisal and inspection fees, and financing costs. All of these expenses factor into how much you end up spending when buying a house.

One thing to note is that earnest money deposits are not actually expenses by themselves — they are a show of good faith and more like a security deposit to show the seller you are serious. When you close on the property, the earnest money funds will be applied to the total cost of buying the property.

Specific Massachusetts closing costs

Outside of the down payment, closing costs tend to be the next largest expense for home buyers — though they're really a bunch smaller of fees lumped together.

In Massachusetts, the average buyer spends about $10,851 on closing costs, but that's just an average. It could be more or less depending on your sale price, lender's fees, and negotiations with the seller. In particular, sellers sometimes offer to cover some of the closing costs — called seller concessions — to sweeten the deal.

Below is a summary of the most common closing costs for buyers in Massachusetts:

One optional expense you should seriously consider is paying a lawyer to file a Massachusetts homestead declaration. This protects up to $500,000 of equity in your home if someone should file a lawsuit against you, and they generally only cost $100–$200 to file. In effect, this is some of the cheapest insurance you'll ever buy for what it covers.

Average cost to buy a house in major Massachusetts cities

You know the old adage: location, location, location. Well, as you probably expected, most of the costs to buy a home in Massachusetts vary significantly based on where you are buying. Besides different sale prices, taxes and local fees can impact how much it costs you to buy a house in different areas.

Below is a table showing the average cost to buy a house in some of the more popular cities in Massachusetts:

If you're concerned these costs are adding up, we recommend working with a local expert. They can walk you through the buying process and help you avoid the many pitfalls to ensure you get the best deal possible.

How much do I need to buy a house in Massachusetts?

So how much do you need saved to buy a house in Massachusetts? It really depends on the size of your down payment and the sale price. This may seem obvious, but the large range of possible down payments could mean the difference of tens of thousands of dollars for the average-priced home in Massachusetts.

To give you a ballpark idea of how much you'll need, we've created the table below to show how much you need saved for just the down payment at various price points.

Remember that there's more to the cost of buying a house than the down payment though. You need to add the closing costs, inspection and appraisal fees, lender fees, and reserves to get a more accurate picture of your total cost to buy a house.

Getting the seller to cover some or all of the closing costs is one of the more effective ways to keep the cost down, besides making a smaller down payment.

Cost to buy a house in Massachusetts calculator

For a more specific estimate of how much money you'll need for a certain house with a specific down payment, use our home buyer calculator below.

Ongoing costs of homeownership in Massachusetts

Unfortunately, the cost to buy a house is just the beginning. After closing, you'll officially own the home and begin paying for the ongoing costs of homeownership. This includes your mortgage, taxes, insurance, and regular maintenance. The total amount you spend on these can vary greatly, but experts suggest planning to spend about 1% of your purchase price on maintenance per year.

» MORE: The true cost of home ownership

We've provided a summary of what the average home-related expenses could cost you per month below:

Besides the expenses outlined above, there are a few others to be aware of. For example, if you pay less than 20% as a down payment on your house, you will probably have to pay private mortgage insurance — or PMI — to compensate your lender for the additional risk they run of losing money lending to you. This usually gets removed once you reach an adequate level of equity in your home by paying down your mortgage.

You also may need to account for homeowner's association (HOA) fees. These don't apply to every home, but the national average for HOA fees is around $250 per month; so if your house belongs to one, it will be a relevant expense you need to plan for.

Top ways to save money when buying a house in Massachusetts

There's no getting around the fact that it can be inconvenient paying for a house. That said, there are steps you can take to lessen the burden and get the most bang for your buck.

Look into better financing options

Since most of us finance our home purchases, this tends to be a good place to start when cutting costs. Making a smaller down payment will certainly help keep the initial cost to purchase a house down, but it will mean larger monthly payments for the life of the loan.

Paying off debts and getting your credit in the best shape possible before applying for a loan will help you get a better interest rate, which will lower your monthly payments for the life of the loan.

You can also shop around to compare lenders so you get the lowest fees and interest rates available. It may be a good idea to enlist the help of a mortgage broker if you're not sure how to go about vetting lenders.

If the upfront cost is your primary concern, you could look into no closing cost loans, but you should proceed with caution. These loans lump the closing costs in with the loan itself, so you pay for them over time, but this usually comes with a higher interest rate. This means you'll pay more over the life of the loan.

» MORE: Other considerations for saving money when buying a home

Participate in home buyer programs Massachusetts

Massachusetts offers various programs to help buyers begin their homeowner journey (e.g., STASH, Operation Welcome Home). Some offer favorable financing or down payment assistance, others focus on helping specific demographics.

We recommend you apply for this assistance if you qualify for any of the programs — every little bit helps.

» MORE: A guide to first-time home buyer programs everyone should know about

Partner with an expert agent offering cash back

Some real estate companies, like Clever, offer home buyers a percentage of their home's price back after the sale finalizes.

That means if you work with a Clever agent, you'll not only get the expertise that helps you get the best deal possible — you could also get money back after closing!

FAQs

The post How Much Does It Cost to Buy a House in Massachusetts? appeared first on Semya-Moya.

Fortunately, Semya-Moya can help lighten the burden by putting money back in your pocket right after you close. By working with a Clever-recommended agent, you will get top-notch service and could be eligible for cash back on your home purchase.

Average cost to buy a house in Pennsylvania

The largest factors in determining the cost to buy a house in Pennsylvania are the sale price and the size of the down payment. That said, the closing costs, inspection and appraisal fees, and financing costs can add up as well.

Below is a summary of the major expenses you should plan for when preparing to buy your next home.

Remember that the earnest money deposit is not an expense itself, but a show of good faith and some added security for the seller. The amount you offer for this is up to you, but larger amounts tend to make the seller more comfortable. Assuming you successfully close on the property, the entire earnest money deposit will be applied to the other expenses.

Specific Pennsylvania closing costs

Besides the down payment, closing costs tend to be the next largest portion of the up-front costs to buy a house. These include the various expenses required to complete the transaction and are paid on the closing day.

The average closing costs in Pennsylvania for buyers are about $8,570, but these vary depending on the sale price, your lender's fees, and negotiations with the seller.

The table below shows an overview of common closing costs for buyers:

Average cost to buy a house in major Pennsylvania cities

With most expenses involved in buying a house, the price and location are major factors in determining how much you'll spend. Where a house is located has significant influence on its value, and different areas have varying fees for buying and selling real estate.

Below is a table showing some of the more popular places to buy houses in Pennsylvania, along with the average cost to buy a house in each city.

Working with an expert agent in your area is one of the best ways to ensure you get the best deal possible and avoid unnecessary fees.

How much do I need to buy a house in Pennsylvania?

For many buyers, saving for a house can be intimidating. But there are a number of ways to make the amount you need to save more manageable — like making a lower down payment.

The table below shows how much you'd need for various size down payments at common price points in Pennsylvania, since that is usually the largest expense you need to pay up front.

You will also need to account for closing costs, inspections, and appraisals, but remember that some of these expenses are negotiable — you may be able to convince the seller to cover some of these expenses if there isn't too much demand for the house.

Cost to buy a house in Pennsylvania calculator

For a more specific estimate of how much money you'll need for a certain house with a specific down payment, use our home buyer calculator below.

Ongoing costs of homeownership in Pennsylvania

Many home buyers spend a lot of time worry about the cost to buy a house, but not enough time thinking about the cost of owning it.

Ongoing homeownership costs can add up once you account for the mortgage payment, taxes, insurance, maintenance, and occasional improvements. You should factor all these costs in when deciding which home you want to purchase.

» MORE: The true cost of home ownership

To help with the decision, we've compiled a list of the average monthly expenses for homeowners in Pennsylvania.

Another expense to consider is private mortgage insurance — or PMI. This is a monthly fee lenders charge if you make less than a 20% down payment on your house. The rationale is lenders are taking on additional risk of losing money if a borrower defaults and doesn't have enough equity to recoup their investment when the lender repossesses and sells the house. Once you reach the required level of equity, PMI should be removed from your monthly bills.

Another possible expense is homeowner's association (HOA) fees. These don't apply to every home, but the national average is about $250 per month, so it can be a meaningful expense if this applies to your home.

Top ways to save money when buying a house in Pennsylvania

Buying a home can be expensive, but there are a variety of ways to save money in the process. Implementing some or all of these will lessen the financial burden and possibly be the difference between you being able to afford your dream home or not.

Look into better financing options

One of the most important aspects of buying a home is the financing you use for the purchase. Getting a bad rate or being blindsided by excessive fees at closing are a surefire way to make it a bad experience.

Shopping around for the best lender who offers competitive rates and low fees is a great first step in saving money when buying a home. You can also increase your odds of getting a competitive rate by paying off debts and maximizing your credit score before applying for a loan.

If the up-front cost is your primary concern, you could look into no closing cost loans, but you should proceed with caution. These loans lump the closing costs in with the loan itself, so you pay for them over time, but this usually comes with a higher interest rate. This means you'll pay more over the life of the loan.

» MORE: Other considerations for saving money when buying a home

Participate in home buyer programs Pennsylvania

There are a number of programs in Pennsylvania designed to make entry to homeownership easier for potential buyers (e.g., PHFA grant, K-FIT loan program). Some of these programs offer down payment assistance or better financing options. Others aim to support specific demographics like public service workers, veterans, low-income households, or the disabled community.

» MORE: A guide to first-time home buyer programs everyone should know about

Partner with an expert agent offering cash back

Some real estate companies, like Clever, offer home buyers a percentage of their home's price back after the sale finalizes.

That means if you work with a Clever agent, you'll not only get the expertise that helps you get the best deal possible — you could also get money back after closing!

FAQs

The post How Much Does It Cost to Buy a House in Pennsylvania? appeared first on Semya-Moya.

That said, in Florida the median home value is $406,988 and most home buyers spend between $31,050, and $111,830 to close on a property.

On the bright side, Semya-Moya can make this process easier and a little more affordable. By working with a Clever-recommended agent, you will get top-notch service and could be eligible for cash back on your home purchase.

Average cost to buy a house in Florida

The average cost to buy a house in Florida is mostly determined by the down payment and the sale price of the home. Although, there are a number of other factors that contribute to the total cost of buying a home.

Below is a quick overview of the major expenses associated with buying a Florida home:

Although this list covers most of the major expenses, you should be aware that every situation is a little different, and your purchase may allow for negotiating down some expenses or you may have to pay a little extra. A good agent can help you navigate these details throughout the process.

Specific Florida closing costs

In Florida, the majority buyer closing costs tend to pay for expenses related to the mortgage and payments (e.g., underwriting fee). The average closing costs in Florida for home buyers tend to be about $7,483, but these can vary depending on your area.

Below is a table outlining the most common closing costs you can expect to pay:

» LEARN: How much will you pay for closing costs in Florida?

Average cost to buy a house in major Florida cities

The most important aspect of real estate is location, location, location. State averages can give you a general idea of what to expect, but buying a beach-front condo in Miami is likely to be very different from a single-family home in Jacksonville.

In Florida, some of the most popular places to buy a house include: Miami, Orlando, Pensacola, Port St. Lucie, and Tampa. Below are the average home prices and cost to buy a home in each city:

Finding an agent who is an expert in your area is one of the best ways to save money and get a great deal on your next home purchase.

How much do I need to buy a house in Florida?

How much money you need to buy a house in Florida is mostly determined by the sale price and the percentage of down payment you make. If the home needs immediate repairs or renovations, that could significantly increase your upfront cash investment. For most buyers, however, the down payment, closing costs, and lender fees will comprise most of the money they need to close on a home.

The table below shows how much you'd need for various size down payments at common price points in Florida, since that is usually the largest expense you need to pay up front.

You will also need to account for closing costs, inspections, and appraisals, but remember that some of these expenses are negotiable — you may be able to convince the seller to cover some of these expenses if there isn't too much demand for the house.

Cost to buy a house in Florida calculator

For a more specific estimate of how much money you'll need for a certain house with a specific down payment, use our home buyer calculator below.

Ongoing costs of homeownership in Florida

When buying a house, you want to consider the cost of owning the home after the purchase, as well as the cost to buy it.

Besides your mortgage payment, you also need to account for taxes, insurance, maintenance, repairs, and possibly upgrades. There can be quite a bit of range for most of those expenses, but most experts recommend earmarking one percent of your home's value for maintenance and repairs.

» MORE: The true cost of home ownership

If you make a down payment of less than 20%, your lender will probably charge you private mortgage insurance (PMI) until you reach the required level of equity to get the monthly fee removed. This compensates the lender for the additional risk they are taking of losing money if a borrower defaults without adequate equity in the home.

Also, be aware that some houses belong to a homeowner's association (HOA), which usually include a monthly fee. These fees vary widely depending on the area and what they pay for, but the national average is about $250 per month.

Top ways to save money when buying a house in Florida

Often the cost of buying a house makes homeownership cost prohibitive for many potential buyers. There are, however, some strategies you can implement to save money and stretch how far your dollars go.

Look into better financing options

As a buyer, most of the costs associated with buying a house will be strongly influenced by the kind of financing you have. Making a larger down payment will help to keep your interest rate low and eliminate the PMI if you pay at least 20% of the purchase price.

But for some people, that's just too much money to come out of pocket for. You still have options for saving money on financing. Paying off debts and boosting your credit score will make you a more appealing borrower, which could result in a lower interest rate and lower mortgage payments.

If you're a repeat customer, you might also ask your lender to lower or eliminate unnecessary fees. Alternatively, using a broker might help you shop around for a lender who offers you the best financing options with minimal fees.

You could also look into no closing cost loans if you're more concerned about the up-front cost, but these tend to come with a higher interest rate and cost you more in the long run.

» MORE: Other considerations for saving money when buying a home

Participate in home buyer programs Florida

Florida has a variety of programs aimed at helping people begin their homeownership journey (e.g., FL Assist, Hometown Heroes). Some of these programs offer better financing, down payment assistance, or lower application requirements. Others are directed at helping specific demographics like the disabled community, veterans, or first-time home buyers.

» MORE: A guide to first-time home buyer programs everyone should know about

Partner with an expert agent offering cash back

Some real estate companies, like Clever, offer home buyers a percentage of their home's price back after the sale finalizes.

That means if you work with a Clever agent, you'll not only get the expertise that helps you get the best deal possible — you could also get some money back after closing!

FAQs

The post How Much Does It Cost to Buy a House in Florida? appeared first on Semya-Moya.