Homebuyers are left with no shortage of options to consider when searching for a new home in the state of Mississippi, but those that want a good deal are better off looking at foreclosed properties. While they might come with an extra headache or two, foreclosed homes generally sell for a fraction of their value.
A foreclosure occurs when a bank or lender seizes a property due to missed payments or a defaulted mortgage. The lender will gain ownership of the property through foreclosure proceedings, at which point they can do what they want with it. Usually, that means listing the home for sale below market value.
The reason most foreclosed homes are cheaper than comps in the area is because most lenders and banks have no interest in keeping the home on their books – making them motivated sellers. They’re also sold in as-is condition, which means foreclosure listings generally require repairs before the buyer can move in.
Different Methods for Buying a Foreclosed Home
Buyers can purchase a foreclosed property in a multitude of ways and it generally depends on who owns the foreclosed home at that time – this could be a bank, a lending company, or even the government. They can also purchase a foreclosed property at an auction through a number of third-party trustees.
Let’s take a closer look at the different methods to consider when buying a foreclosed house:
- Auction – many banks and lenders auction off their homes at an auction house, making them available for a fraction of the actual price.
- Bank Foreclosures – you can also find a list of foreclosed homes for sale on a bank’s website.
- Mortgage Company – some mortgage companies will list their foreclosures on their website.
- Government Foreclosures – certain government agencies gain ownership in homes after the owners default on payments and will list them on their website, if not in an auction.
In addition to what’s listed above, there’s also something called pre-foreclosure – also known as short sales. This occurs when the homeowner knows there’s a potential for foreclosure and tries to sell the home quickly before it gets to that point. Because of this, they’ll usually settle for a price below market value.
How to Look Up Foreclosed Houses in Mississippi
Wanting to purchase a foreclosure home is one thing, but knowing how to find foreclosed homes is a completely different story – one that most people don’t fully understand. And since not all methods are created equal, potential homebuyers need to be careful with their sources and where they get their info.
The truth is there are plenty of different ways to look up foreclosure properties in your area – here are some of the most prominent:
- Real Estate Agent – some real estate agents specialize in foreclosed homes and can give you a list of options in your desired area to ensure you only consider the best options.
- Real Estate Marketplace – you can search for a foreclosed home on Zillow, RealityTrac, Trulia, Century 21 Real Estate, Redfin, and other real estate marketplaces by customizing your search filters.
- Newspaper – you can find a growing list of Mississippi foreclosures in the newspaper and there are several magazines you can subscribe to that’ll keep you up to date with all the newest listings.
- Banks – banks like Bank of America and Wells Fargo list their foreclosures on their website and provide a price for the home, a description, and sometimes even photos of the home.
- Government Agency – the United States Department of Housing and Urban Development (HUD) lists foreclosures on their official website.
- Auction House – there are auction houses all across the country that are constantly auctioning off foreclosures for various lenders, banks, and third-party owners.
Of course, there’s also the traditional way of driving around your neighborhood and searching for a house in foreclosure. When you come across one while you’re driving around, make sure you get contact info and take a look at the surrounding area to get an idea of what you’re getting yourself into before buying.
Pros and Cons of Buying a Foreclosure Home
Buying a foreclosure property comes with its fair share of risks, but it also comes with plenty of benefits. Because of this, determining whether or not a foreclosed home is right for you will require weighing the pros and cons. Let’s first take a look at some of the most prominent benefits with foreclosure houses:
- You can find a home at a much lower price
- Homes tend to close much faster
- Doubles as a home and an investment opportunity
- Buyers have a much higher bargaining power
- Flexible mortgage options
Now, let’s take a look at some of the risks and disadvantages of buying a foreclosed property:
- Buyers need to move in rather quickly
- Home sells as-is and tends to have damage
- Repairs are usually needed before moving in
- Potential for extra costs and expenses
- Might not receive an inspection or tour
- Usually need to have cash in hand
- The market is fairly competitive
If you’re interested in buying a foreclosure, it’s best to meet with a real estate agent who specializes in foreclosures to ensure you’re getting a quality property with limited surprises. They’ll help you weigh the pros and cons of each individual property and make sure you get the foreclosure at a reasonable price.
We’re Interested in Your Foreclosure!
Do you have a home that’s about to enter foreclosure? Are you late on your mortgage payments and fear that the bank or lender will take your property away from you? Do you need cash for your home right now? If you answered ‘yes’ to any of those questions, then you need to contact Troy Kearns right away!
At Sell Your House Fast MS, we’ll put together a free, no-obligation cash offer for your home – no matter what reason you have for selling it. If you want to see how much money your home is worth today, contact us at (601) 210-2151, email us at tk@lacasaglobal.com, or fill out our online form for an offer!
