Whether you are a first-time land buyer or a seasoned pro, buying land in foreclosure is a bit different. Foreclosures occur when property owners default on loan payments, leading to lender repossession. The lender typically take a series of escalating steps, including notification of default on the loan and transfer of ownership. At that point, a lender may sell the property to recoup the outstanding balance.
In today’s competitive and high-priced land market, there are many buyers that are attracted to the idea of buying property in foreclosure. The most significant benefit of purchasing land in foreclosure is the price. It can be a smart way of acquiring lower-cost real estate and adding to your investment portfolio.
Consulting with your attorney, researching title, investigating the property, verifying funds, and knowing your risk tolerance are important boxes to check before showing up to bid at a sale. If you are thinking of buying property in foreclosure, always make sure that you do your research, get the help of a land agent, and consider all of the many variables that can affect your ability to secure the property through a public auction.
Pat Porter, with RecLand Realty, shares some information to help you decide if purchasing land in foreclosure is right for you and how to approach the process if you find land in foreclosure that you want to buy.
This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of LANDTHINK. Use of this content without permission is a violation of federal copyright law. The articles, posts, comments, opinions and information provided by LANDTHINK are for informational and research purposes only and DOES NOT substitute or coincide with the advice of an attorney, accountant, real estate broker or any other licensed real estate professional. LANDTHINK strongly advises visitors and readers to seek their own professional guidance and advice related to buying, investing in or selling real estate.
Add Comment