If you are a real estate investor looking to add one or more condominiums to your roster of properties, your first stop should be a condominium foreclosure list. By purchasing a foreclosed condominium, you will be paying a lot less, allowing your potential for profit to increase considerably.
While searching for condominium foreclosure properties may be time-consuming, it may be well worth the effort. Foreclosed homes across the nation sell, on average, for about 22% less than the rest of the market. There are three stages of condominium foreclosure to consider:
1. Properties can be purchased during the pre-foreclosure period granted by the state.
2. Find condominium foreclosure options at an auction at the end of the pre-foreclosure period.
3. If the property is not sold at auction, or if the bank is the highest bidder, it will be put back on the market.
Research condominium foreclosure laws in your stateThe process of purchasing foreclosed property differs from that of standard investments. Foreclosure laws also vary widely from state to state; it's best to know as much condominium foreclosure information before making a purchase. Investors will also benefit from becoming familiar with laws in different states in which you may be interested in building your portfolio of properties.
Seek out condominium foreclosure properties before they hit the marketHire or consult with a preferred condominium foreclosure provider to seek out the foreclosed condos before anyone else. Developing a relationship with a condominium foreclosure provider will enable you to get insider information and advice that may not be generally available.
Use a condominium foreclosure directory for bank-owned condosCondominium foreclosure lists detail seized inventory under bank possession. While investors may have to negotiate more and compete with contending parties in the market, the savings should still prove better than a new purchase. A condominium foreclosure directory also enables investors to compare properties in areas of interest to develop a personal list of potential purchases.
- A condominium foreclosure may have extensive damage. Whenever possible, try to have a housing inspector check out the property before purchasing the home to evaluate the cost of the repairs.
- Try to steer clear of a condominium foreclosure in a complex where there are several properties also going into foreclosure. If there are several similar properties, chances are that the homeowner's association isn't collecting dues from them, which means the complex might not have enough money for routine maintenance.