Common Questions About Buying a Foreclosure in Columbus, Ohio
Is buying a foreclosure a difficult process?
It can be. You will need to have thick skin. The process can be long and strenuous. Banks and lenders have tens of thousands of foreclosures for sale all over the country and they are under staffed.
How do I find foreclosure listings?
This website is the best resource for foreclosures, short sales and HUD listing in Central Ohio. The database is updated daily. You can also search for foreclosure listings in real estate magazines, newsletters, newspapers. Government agencies such as Fannie Mae (fanniemae.com) and the Department of Housing and Urban Development (HUD.gov) also advertise foreclosed homes for sale. Check public records for other leads like the Delaware County Sheriff and the Franklin County Sheriff sites. A lender deciding to foreclose must file a notice of default in the local county clerk's office.
How much will the bank accept?
Banks and investors want to recover as much of its investment from the foreclosure as quickly as possible. Foreclosed homes are often unloaded at significant discounts-- upwards of 35 percent or more. Most are priced to sell in less then 30 days. If the house has just come on the market, the bank won’t negotiate very much off the list price. As the property remains on the market, the bank will begin to discount the list price.
Do I need a real estate agent to buy a foreclosure?
No, but it is advisable. Using a Buyers agent shouldn't cost you anything and it may end up saving you quite some money in the end. Find a real estate agent or Realtor experienced in buying foreclosures and Short Sales. Some banks won't accept offers from unrepresented buyers.
How can I see one of these foreclosures?
A viewing maybe set up with one of our representatives via email. When you visit the house inspect it as closely as possible. Most foreclosures are behind in maintenance however, some maybe in fairly good shape. Plan on there being at least some cosmetic work to be done to the home.
Should I have the home inspected?
Absolutely! Have the licensed home inspector do a complete inspection of the house. Most foreclosures are sold "as is". Some banks and lenders will make repairs however, it should not be assumed.
What paperwork will I have to fill out for a foreclosure?
Be prepared to deal with a considerable amount of paperwork especially with a foreclosure. The bank or lender will have numerous pages of addendums protecting their interests. You may want to get the assistance of a real estate attorney to review the documents.
How do I know if a foreclosure is a good deal?
Check or have your real estate agent check nearby or comparable sales of properties. This is the best way to determine value of a foreclosure.
How to determine comparable sales of other houses
In many cases, the list price has little bearing on the value of a foreclosure. The market value is the true value of the house.
Look at comparable sales for that neighborhood to determine how much the foreclosure is worth. There are several good websites like Truila.com to find comparable's. Try to use only those homes that most closely match the foreclosure regarding square footage, number of bedrooms, baths, amenities and condition. Also, active listings should be considered. Active listing are houses that are currently for sale. Buyers will also use these houses to formulate a price.
What if there is more than one offer on the house?
If there are no offers on the foreclosure, you can probably offer less than list price and negotiate. If there is more than one offer everything goes out the window. It’s advisable to offer your highest and best offer and hope it is the winning bid.
If there are more than two offers, there is a chance one maybe cash. Banks like all cash offers. If you are obtaining financing, then you may need to increase the price on your offer to be considered.
Do I need a preapproval letter?
Before starting to search for a foreclosure you will want to get a preapproval letter from a lender. Some banks (Wells Fargo, ect) may require a preapproval from their lending division before they will even look at an offer. Others may mandate that the letter is from a nation bank (Chase, Bank of America, ect.) If it is a cash offer, you will need a letter from your bank or a recent statement showing the funds are available. Regardless it’s a good idea to have your financing in place before you begin the search.
