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So, You Want to Buy a Foreclosured Home?

Are you interested in buying a foreclosed home?

Well, the first thing you should do is contact a Boston real estate lawyer.

But if you're just mulling the topic right now, perhaps these quick tips will help you. I picked these up from CNN Money, so they're really basic and not necessarily state-specific to Massachusetts. Read these tips as a starting point and then discuss your concerns in greater detail with a Massachusetts real estate attorney.

Ask yourself which stage of foreclosure you are interested in. Some experts agree that a bank owned property is usually the smartest type of foreclosure to buy. Some daring homebuyers try to buy homes that are at the pre-foreclosure stage. I've discussed the purchasing of foreclosure notes (a.k.a. non-performing notes) in a prior blog post. But those notes have a lot less to do with buying the house and a lot more to do with buying an investment. Foreclosure notes are for the highly sophisticated real estate investor.

But I digress.

To return to the topic at hand, the least risky move might be to buy an REO, otherwise known as a repossessed home. You can often find these for sale by the bank.

Sheriff's auctions might also be a good place to find a foreclosed home. These auctions are said to yield the lowest prices. But these houses are sold as-is and a buyer might not often have the chance to inspect the home beforehand. If you're the handy type, then this could be a good option for you. But be forewarned.

Before you take the plunge and buy a foreclosed home, do you research. Look into property values and comparable prices in the neighborhood. Prepare for anticipated repair costs. And be careful not to get too caught up in the excitement of bidding.

If you're ready to make the move, contact a Boston real estate lawyer today.

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