Buying foreclosed North Carolina homes from a mortgage broker: issues to be aware of

Buy a home inspection before buying foreclosed North Carolina homes from a mortgage broker

The foreclosure market is a great place to begin your search for a bargain on your next home purchase. Many times, foreclosed homes are a good deal, but when buying foreclosed North Carolina homes, mortgage brokers will usually advise you of the possible drawbacks to foreclosure sale. If you are prepared to do research prior to buying foreclosed homes or plan on working with a licensed real estate professional, you can avoid potential issues of a foreclosure purchase.

Lenders selling foreclosed homes often work with mortgage brokers. Mortgage brokers have long-standing relationships with lending institutions and access to a large number of potential buyers. Like real estate agents, brokers will list the properties for sale in newspapers and in other public outlets.

One advantage of buying foreclosed North Carolina homes from mortgage brokers is that brokers provide helpful intermediary services between you and your chosen lender. This reduces the amount of work you need to do at closing.

It is usually a good idea to get pre-approved for financing before looking at properties. This first step can make the buying process quicker and easier. You typically need to show a pre-approval letter to be registered to bid at an auction or make an offer on a foreclosed home for sale elsewhere. If you don’t already have a pre-approval, mortgage brokers can help with that part of the process too.

You should be fully informed about your state's foreclosure sale laws before closing, no matter which entity is selling the property. A mortgage broker who specializes in foreclosures should be knowledgeable about state laws.

If you are interested in buying Mortgage Company foreclosed North Carolina homes, some of the other benefits of this type of sale are that the mortgage company typically checks for outstanding liens on the property’s title and allows you to pay for a home inspection before you buy. It’s illegal for mortgage brokers to misrepresent the facts in an effort to sell a property, but they won’t necessarily have properties inspected. An inspection costs $300-500 and is a good investment. It is common to discover costly damages because the previous owner did not have the money to make repairs. Also, many foreclosed homes are vacant for long periods of time and may be damaged by vandals or squatters.

Because of these potential problems, it is important to use due diligence when buying foreclosed North Carolina homes. Mortgage brokers allow you to do this research before buying, which is not typically the case if you buy a foreclosed home at an auction.

To see Mortgage Company foreclosed North Carolina homes and real estate owned properties for sale, go to RealtyNow.