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What you should know about Sedona, AZ Foreclosures! 
As banks are anxious to get these foreclosed properties off their books, they have been selling them at well below market value.
If you're looking to buy a home now - and plan to stay in it for a while - there are plenty of bargains to be had and a foreclosure can certainly be one of them. Once the bank becomes the owner of a property in foreclosure, these properties are then known as bank-owned or real estate-owned (REO), most of the public will continue to refer to them as foreclosures. Prospective buyers should know that closing on that fantastically priced home is often a lot more complicated and risky than buying directly from a seller who's not under financial stress. Expect lots of twists and turns.
If you would like to pursue buying a foreclosure, wait until the bank has given it to a real estate agency to sell. By then ithe bank should have paid off all existing debts and taxes, and made at least minimal repairs to bring the home to the standards of the neighborhood. Many of these foreclosed distressed homes have been neglected and will require work, the question will be how much work? The property should be in such conditon that it would qualify for bank financing which is available to buyers of foreclosures.
A few things you should know before buying a foreclosure
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With foreclosures the biggest probem is "failure to disclose."
Most banks do not provide a SPDS "Sellers Property Disclosure Statement " because they do not know the home personally. This statement, required by ADRE, obligates the Seller to disclose to buyer, facts materially affecting the value of the property that the Seller is aware of but that the buyer would not be.
Before you snap up the cheapest home you can find, make sure to do some research and contact a responsible and reputable realtor who can advise you on the condition of this home and guide you through the process.
Bidding on a home at a court auction is best left to experts who have the money and time to research these homes. You'll be buying a home sight unseen and without an inspection. You would have no idea whether the home needs repairs and how much they might cost. Are there any back taxes that you would be responsible for. A home bought at an auction cannot be financed so have cash ready.
Foreclosures are certainly worth exploring, but don't assume that just because it's a foreclosure, you're getting a great deal. In order to know if it's a true bargain, you must do your your homework. Research prices of Homes Solds and Active to identify potential deals and to make sure you aren't overpaying for the property. Some of the homes might not be worth the asking price as some home owners have stripped the house of applicances, carpeting, chandeliers, while others have been vandalized. As home values have dropped dramatically from their high in 2006, many homeowners owe more on the mortgage than their property is actually worth.
Getting prequalifeid is important regardless of whether you're buying a foreclosure or regular home. Not including a prequalificatoin when the Purchase contract is presented, will certainly put you at a disadvantage. Banks are overwhlemed by foreclosures and don't have time to be chasing missing documents including preapprovals. So if you don't want to miss out of that great find, get preapproved and make sure you're working with a realtor who can navigate through this daunting process..
Everyone knows to get a home inspection before buying a home. But when buying a foreclosure, inspections are especially important. When homeowners are financially strapped, they put off making the necessary repairs. Once a home is seized by a bank, it then sits vacant and falls even further into disrepair. In a worst-case scenario, a homeowner could be so angry he lost his home that he actively destroys a property before he moves out. Without an inspection, you won't be able to estimate the cost for repairs or be able to report the home's true condition to your lender. Bottomline get a home inspection and any other inspection that's important to you, roof, termite etc.
