The holder of the property might not make the key or interest payments and possession of the home is with the mortgage investor. Foreclosed or repossessed houses are known as Real Estate Owned or REO. Currently, there has been tremendous growth in the foreclosure market.
Demand for repossessed properties as well as bank repo homes, have also increased significantly. Due to this growth, investors and home buyers are using a number of ways to discover the best property on the market. Use of foreclosure listings is among these ways. Below are top 5 common ways in South Africa to get your hands on and find good repossessed property.
Tip #1 Estate Agent or Realtors
The very obvious place for an individual to find repossessed property is at the local agents’ office or any realtors’ office. When a property is repossessed, the mortgagee will basically select an estate agent who is available in his or her local region. It is the duty of the agent to get the finest probable value for the property, thus, it will be put on an open market and marketed just like any other house.
Realtors present in your area know about a number of properties that are being sold and if the asset is in a foreclosure state. It is the job of the realtor to find a good house for you and this includes the property that has been reclaimed by the bank. The caution with using a real estate agent is that they will get a section of the sale of the home as a commission, so ensure to factor that in any costs.
Tip #2 Referrals
Word of mouth is the best advertising agent. Many people discover about reclaimed properties on the market through the word of mouth. You might know an individual who is employed at an auction or estate agencies or a colleague or friends who might be aware of reclaimed houses on their road for sale. This is one of the best way in which you can get in first particularly if the house is in greatly sought after area.
Repossessed property that is cheaper will be on high demand given that the existing financial climate has put constraints on expenditure for most people. Therefore, you should ask around. You might be amazed by what you will find out.
Tip #3 The Internet
Since the invention of the internet, life has become easier. The internet now offers people with more information compared to the past years and this also includes details of all reclaimed properties for sale. You can visit individual agency websites in your selected location, or you can opt to visit a site that is dedicated to the marketing of repossessed properties alone. Many websites have such features thus, allowing an individual to find repossessed properties across a lot of agency websites.
This is one of the best ways in which one can use to compare a number of houses. Nonetheless, you should know that there are some websites that will charge you a membership fee in order for you to join. Therefore, in such scenarios, it will be best if you contact the research on your own.
On top of searching from the internet, you can also read the legal section of local newspapers to find notices of sale for any repossessed property. The notice of sale usually includes information such as opening bid and the exact date of foreclosure or trustee sale. Generally, notices are usually published for three weeks in the newspapers.
Tip #4 Property Auctions
Some people opt for auctions as one way of getting a cheaper property. Many repossessed properties are usually advertised through this technique. It is possible to find a real deal at an assets public sale however; it is good to at least know how the entire procedure functions. It can be a very expensive mistake to stopover at an auction and then get a bidding war without seeing the real property first. A good number of people have made the mistake before and found major issues with the properties at a future date so refrain from doing the same mistake.
As a matter of fact, when an individual is visiting a property auction, he or she will be given a paper form including all the details of the reclaimed property. Nonetheless, the paper work might not be all-inclusive. It is thus wise to stopover at the property prior to making a bid particularly if you are not well versant with the locality of the property. When you are purchasing a property at an auction, specified deposits and fees might also apply hence it is good notion to find out much regarding auction regulations and rules prior to visiting one.
Tip #5 Talk to The loan Institutions Directly
Any lending institution or the bank does not need to be in ownership of repossessed homes. Thus, visit some few creditors and they will inform you properties that are in various states of repossessed. If you buy directly from the lending institutions, they might be willing to provide enticements such as a lower interest rate and price.
It is not advisable to buy the first property you come across. Doing a thorough search will help you to get the finest deal. There are a number of repossessed properties available on the market today and it’s good to first of all investigate your options fully prior to making a deal. Try to pay a visit to the property more than once in order to find out more about potential works needed. This can stop many hassles at a late date. You should also attempt to find out the legitimacies of the house specifically if you are trading with a real estate agent.