Australia Foreclose Homes continued to have the lion’s share of distressed property sales; increasing slightly from 2011 and maintaining an almost 50% share of distressed properties nationwide.
Foreclosure is a specific legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.
According to a new report by Colliers International, Queensland saw a marginal increase of 3.5%, going from 382 properties to 395 properties, whilst South Australia saw an increase of 20 properties to 32 properties.
An increase of Aussie Foreclosure Homes is soaring high in the market. This is not a bad sign but rather an opportunity for old houses to have a makeover. It is also an advantage for bargain hunters and homebuyers to avail cheap house.
Nonetheless, before plunging and buying Australia Foreclose Homes, be guided of the following:
- Don’t go to Auctions unprepared.
First of all, if you’re new to the foreclosure market, don’t even think about buying a property at a foreclosure auction without taking with you enough knowledge.Find a bullet-proof system to learn, before going to any auction.
Potential buyers losses the opportunity to inspect the house since it was vacated.Instead of investing, you might be spending your money on expensive repairs or payments to the creditors. So make sure to do your research before joining the foreclosure homes buying bandwagon.
2. Inform the recent owner
If the homeowner is currently residing in the house while the auction is taking place, you will be considering some factors such as evicting the owners and vandalism. Homeowners can be quite bitter once the auction is underway.
3. Approach the lender directly
If you are eyeing a house, do not be tempted to seek for a real estate agent. Directly approach the owner of the house after the foreclosure but before it has been listed for sale. Some local or community bank institutions are keeping the title for processing foreclosure sales.
4. Prepare Extra Money for Maintenance
Foreclosures are generally sold “as-is”. If you are familiar with REO or bank-owned properties, you will be expecting a poor condition house. The bank that owns the title will not make repairs for the new owner of the house.Negotiate especially if the house has been on the market for a time. However, since the bank is selling at loss, your chances for lowering the price are limited.
5. Get Pre-qualified
Before starting the house hunting for Australia Foreclose Homes,acquire a Letter of Pre-Qualification from the lender.Since many are into bargain-basement prices, the market is surprisingly competitive and fast moving. A seller would prefer working with a buyer who is financially stable rather than waiting for a loan approval.
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