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How to Find Distressed Houses?

Owning a home in America is the fulfillment of the ultimate American dream. If you happen to be looking for distressed houses for sale , assetcolumn.com can present to you a guide that can help you understand the ins and outs of purchasing a property and determine the resources offered by the Government.

A distressed property is basically a real estate that is available at a low selling price. The reason is because of an impending repossession or foreclosure. There are different types of distressed properties depending on what stage of foreclosure procedure the property is currently under.

If you are planning to buy such house or property, the following are some of the important points that you need to take into consideration;

Apply for mortgage loan and get approval

This is an important point that you need to take into consideration. You need to approach a banker for approval of your offer. In this way, you can have a better chance of acquiring the property of your choice.

However, there are possible drawbacks to this procedure. If a home has existing damages that require serious repair, the lenders will usually refuse to finance that property.

The reason is because that particular property requires costly repairs and you would need to manage some extra cash for its immediate and proper restoration. Otherwise, you may apply for a second loan to cover up the cost of the repair.

Find well-experienced and professional real estate agents

Problems are always bound to happen along with some legal issues when dealing with badly distressed properties. Therefore, it is advisable to find a highly-experienced and professional real estate agent who can handle such issues. You can search the internet for primary resources.

Owner’s Appraisal Strategies

An appraisal refers to a complete home valuation. If a home is not in good condition, the bank may deny to offer any discounts and other considerations due to the property’s poor state. A distressed property that requires serious repair and attention is considered as a low-value investment and banks are not very keen about such properties. As an option, you may ask your lender to conduct the full appraisal of that property.

Never invest properties in distressed neighborhoods

Just like with any other form of business, real estate investing is all about location and neighborhood. Needless to say, it is not a good idea to invest on a property that is located in a depressed and unappealing neighborhood. A distressed property within a distressed neighborhood is practically overkill. It would be all the more difficult for you to find a lender that would approve your loan.

Location is always important when investing on a property. It is not advisable to invest on a house that is located in a distressed neighborhood or in areas with safety issues.

An example of such neighborhoods are; areas where every home is at risk for foreclosure, condo units located in empty and unoccupied floors, and areas where safety of the residents is a major concern.

Pay attention to damage repair

Homeowners living in mortgaged homes who are forced to leave and evacuate the place may intentionally damage the property. In some cases, before leaving the house, the evicted homeowners would inflict damages on the appliances, fixtures, pipes, electrical wiring and other structures.

Therefore, it becomes extremely important to pay attention to all the damages left by the previous occupants and to prevent the occurrence of secondary problems.

Seek help from a professional home inspector

When buying a distressed house, never underestimate that importance of having a thorough home inspection. This is an essential step that you need to take to assess how badly damaged the property is and to determine the aspects that require immediate attention.

Hiring a professional and experienced home inspector can help you determine the extent of damages and cost estimate for repair.

In any case that the homeowner or your lender refuse to go through this process, you have to cancel the deal right away. Such reaction and outright refusal could indicate that there could be far more serious damages and problems to the property than you think.

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