A foreclosure is a legal process in which a creditor obtains control of a property in the event that the property owner cannot pay his or her mortgage payments. Once a foreclosure takes place, another individual can purchase the foreclosure from the creditor. real estate foreclosures can often be great deals and smart investments. Read below to learn how to purchase a Greenwich, CT foreclosure.
Connecticut Foreclosures Explained
There are two types of Connecticut foreclosures: a strict foreclosure and a foreclosure by sale. A strict foreclosure involves properties with no equity. If the homeowner cannot pay their debt within five months of the initial foreclosure notice, the property passes directly to lender without a sale. A Greenwich foreclosure by sale occurs when a property has equity in it and is sold in a public auction. A Greenwich foreclosure by sale usually takes around 90 days.
Research & Get Pre-Approved
The first step in purchasing a Greenwich foreclosure is to figure out your finances. How will you afford the foreclosure? Prepare a budget that considers expenses like the monthly mortgage payment, insurance, and property taxes. Also be sure to find out if the property in question has back taxes that the new owner would be responsible for.
As with other home mortgages, it’s important to research and compare possible lenders. Once you’ve found a reputable lender that you can trust, get pre-approved for a Greenwich Connecticut mortgage.
Inspect the Property with an Expert
Once you’ve gotten your finances in order, carefully inspect the Greenwich foreclosure with an expert. Some foreclosures may have been vacant for months, so it is important to make sure that the home is in decent shape and has not been vandalized. If the home needs lots of repairs, you may want to rethink buying it. In any event, thoroughly inspect the home with an expert so that you can assess potential repairs before buying a Greenwich, CT foreclosure.
Inspect the Area
Now that you’ve inspected the Greenwich property and concluded that it is a wise investment, the next step in purchasing a Greenwich foreclosure is to inspect the surrounding area. Drive around the neighborhood, both during the day and at night, and ask yourself the following questions:- Is the neighborhood safe, quiet, and clean?- Is it well-lit at night?- Is the Greenwich foreclosure in a convenient location?- Are there several other foreclosures in the neighborhood?- Does the Greenwich, CT foreclosure have good resale potential?
Skip The Auction
Though a Greenwich foreclosure by sale involves a public auction, many advisers suggest skipping the auction for several reasons.- Reason #1 – By purchasing a Greenwich, CT foreclosure at a public auction, you don’t get to inspect the home.- Reason #2 – Purchasing a Greenwich foreclosure at a public auction often involves buying the home with cash.- Reason #3 – Not buying a foreclosure from a public auction gives you more time to carefully inspect the home and neighborhood, and to also get pre-approved for a purchase mortgage.
A majority of foreclosures do not sell at public auctions; if this is the case, the Greenwich foreclosure is then turned over to the creditor and put on the market for sale. At this point, interested buyers can privately express interest in the home.