Just because the prices in the Mobile foreclosure market are low doesn’t mean you should run forward and make a snap decision about buying a foreclosure.  Granted it’s a great way to save money and it’s one of the best ways to get your dream home in the current economy but you need to take careful steps so you don’t burn yourself.  It’s extremely easy to move too quickly and lose your investment on a bad decision.  Follow these tips to help you make the best choice on purchasing a Mobile Foreclosure

Don’t Get Caught in the Frenzy

Everyone and their brother is trying to buy up a foreclosure either for personal use or for investment purposes.  Either way, a buyer stands to make a substantial profit by getting instant equity in their home – especially if you consider profit to be any kind of money saved over the actual market value of a home.  With that said, don’t be a lemming; keep your cool and avoid chasing the deals. 

Banks throw homes into the market at cut-rate prices because a quick sale helps them avoid the expense of upkeep and takes, insurance, heat, etc.  The low prices are golden opportunities but they tend to attract everyone under the sun that’s interested in buying a foreclosure in Mobile.  This can lead to a bidding war that winds up with you paying more than you budgeted.

Contact Direct

This goes for both lenders as well as realtors that specialize in foreclosures in Mobile and the surrounding communities.  Smart buyers establish relations with asset managers where they can gain the benefit of inside information as soon as a new foreclosure hits the market.  The same goes for realtors.  If a realtor knows you’re a strong investor or you have the money to back up your interests then you could wind up with a lot of information before anyone else, essentially giving you the pick of the litter.

Get Pre-Approval

If you’re trying to buy property from a lender such as Bank of America then it helps to get pre-approved for a mortgage from the same bank.  This could make the bank look more favorably on you even if your bid is similar to those of others.  You’re not even locked in though before you ink the deal.  You can change your mind at the last minute and choose to get your mortgage from another source entirely.

Get a Fixer-Upper

Most foreclosures in Mobile and surrounding communities of Alabama are sold as-is.  Banks typically do nothing to these homes to prep them for sale.  While this can be problematic for some, if you’ve got the money to manage a little remodeling it can give you leverage in negotiation of the closing price.  You may also be able to persuade the lender to fix some glaring problems with the home before you buy it.

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