Foreclosures are a great way of finding a fantastic deal on a used mobile home. As a matter of fact, it is not uncommon to buy these types of used mobile homes for twenty (20) to forty (40) percent below market value. It is important to note though that buying a foreclosure is not easy, even if you are getting fantastic pricing, the process is usually quite tedious and may involve you writing lots of offers and going through lots of houses so as to get the home that you want. When compared against a typical resale, the process is a bit different in that only one real estate agent gets involved and there is very little if any room for negotiation. The home also does come on an as-is basis and it is therefore up to you as the buyer to pay for repairs. Here are some more important facts you need to know about foreclosed mobile homes for sale.
Get A Realty Broker
The first step you should take is to get a realty broker who works directly with banks that own foreclosed homes and then get a pre-approval from a lender. As a shopper, you should first visit any site with a database of foreclosed homes. You should also look at local real estate websites that allow you to filter the results so that you are able to only see foreclosures. If you see the home listed as REO (Real Estate Owned) then that means that the home has been through foreclosure and the lender is currently selling it.
It is worth noting that the reason behind going through the foreclosure listing should not be to find a house but is to find an agent. This is because banks usually hire an agent to handle all their REO property. In most cases, you will work directly with the banks broker instead of using another agent. This ensures that the commission doesn’t have to be split between 2 brokers. Because these agents typically have a long lasting relationship with most of these banks, you can also ask them about listings that may be coming up because it does take a few days or even a week before a listing comes onto the database. To show your seriousness about buying the property, make a point of meeting the lender either before or after you meet with the agent.
Unless you are planning to pay for the unit in cash, you should get a preapproval letter from your lender. This letter basically describes how much money you are able to borrow based upon the lenders assessment of your income and credit score. It is important to work out your financing first because the really good bank owned deals tend to go pretty fast and the bank will not have the time to wait for you to get your financing in order. Don’t make the mistake either of expecting to get some financing from the bank that’s foreclosing the home since the lending part is considered a separate transaction with its own unique needs.
When it comes to pricing, it is important to keep in mind that there is basically no bottom line on the price. Just like any other property or real estate purchase, you have to look at the most recent sales prices. At times, the bank prices come in quite low and the home may end up having multiple offers over the initial price just within hours after listing. At times, the price may come in quite high and buyers can come in slightly lower and the bank may consider such offers if they are the only ones coming through.
It is also important to keep in mind that foreclosed houses are generally sold as is. That does mean that you shouldn’t expect to get a discount to compensate you for any repairs. Even though the repairs required may be quite substantial, take this into account when you are making an offer since the bank will not make any concessions after you have made the offer. The rule of thumb when dealing with bank-owned property is to always come in at your best and highest, unless you know that the property has been on the market for long without any positive activity.
Lastly, because most foreclosed homes are bound to need repairs, it is recommended that you have enough trades people who you can engage and have them assess and repair the damage from wood rotting, leaks, pests and mold. Always assume that the heating system and air conditioning will need to be fixed.