Why Should You Buy A Foreclosed Home?

mortgageYour first house will be very important to you. You might want to buy the best of all the homes your estate agent has to offer. However, it is advised to think logically, rather than being over the top. Look at your first house as an investment.
It should be an investment where you should be in a comfortable enough situation to pay off your loan. It should not affect your lifestyle or your family. In simple terms, plan more accurately, instead of throwing your money away all at once.

Why to buy a mortgaged house?
A foreclosed house means that due to non payment of a loan to the bank, the bank has reposessed the property and put it up for re-sale. This means a lot less work financially and legally. Let’s check out how :

Less charge on behalf of the estate agents
When a bank reposesses a property, it lists with its own estate’s agents to put up for sale. Therefore, the bank gives a percentage of interest to that agent. As a result, you pay less for their service.

No advertisement costs
You must be aware of marketing and branding. Always remember when you are purchasing a brand new flat; you are paying its marketing and overhead charges along with the actual price. In this situation as there is no advertisement costs, banks buy to let mortages go substantially down. You are just paying the actual value.

No taxes
In most cases, the previous buyer clears the taxes before final acquisition of the house. Yes, it may sound too good to be true, but you may end up in getting a tax free property. However, you must understand that you have to pay living tax once you have moved in.

What are the measures you must take?
Money matters
You can pay off the money completely or you can apply for an Emerald buy to let mortgage and make it your home. There are certain types of loans that are issued on a buy to let mortage property.  You can also ask your family and friends for references which will aid the process.

Hire a trustworthy estate agent
The question may come up how will you know if the real estate agent can be trusted or not. Ask for his license and certifications. A person who is qualified to sell property will always be licensed. Check his success rate. You can check the success rate by calculating how many foreclosed estates they have sold.



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