Buyers and investors are heading to Minneapolis to purchase foreclosure properties. Affordable foreclosure inventory and low interest rates are creating a high demand for these properties. According to local Minneapolis Realtors, first time home buyers and investors are requesting REO’s and short sales. Competition amongst buyers for these bargain priced homes is creating multiple offers on some distressed properties. Short sales are closing quicker now that lenders are cooperating with their borrowers. Investors are purchasing homes at foreclosure auctions for cheap bargain prices. If you are lucky enough to purchase a foreclosure home in the Minneapolis area, you know you have struck gold. Where to find Minneapolis Foreclosed Homes? The following are the best places to find Minneapolis foreclosure homes:
- Searching county records and compiling lists of distressed homeowners
- Foreclosure auctions
- Advertisements in newspapers
- Local MLS
- Driving by neighborhoods you are interested in looking for sign
County records Going down to the local courthouse is good place to compile a list of owners who have received default notices from their lenders because they are delinquent on their mortgages. You can contact the owners by sending them a post card or dropping by their home and offering to help them avoid foreclosure by purchasing the property. If they are upside down on their mortgage, you can also offer to help them negotiate a short sale with their lender. Don’t be discouraged if you encounter some resistance at first because many times people are in denial or are not even aware that their lender has commenced a foreclosure action against them. Just emphasize that you are there to help them avoid foreclosure and ruining their credit by offering to buy their home. You may also be able to work out a deal allowing the owner to stay in the home for awhile as a renter if they don’t have another place to go. That may help motivate them to sell their home to you. Foreclosure auctions Foreclosure auctions are generally posted online, at the property site, in the newspaper or at the local courthouse. Make sure you confirm the auction date, place and time because many times the auctions are postponed or cancelled while the owners try and negotiate a mortgage modification or other foreclosure alternative with their lender. Also, read the auction bidding rules carefully. Newspaper ads and the Internet Banks list their Minneapolis homes with local Minneapolis Realtors who in turn advertise them in the MLS, local newspapers and on various Internet websites. Distressed homeowners also place ads in the local newspaper and on the Internet. Working with a local Realtor is a good way to find REO’s and short sale homes because Realtors have relationships with homeowners and other brokers in their geographic area and can keep you informed of good opportunities to purchased REO’s and short sales.
Driving the Neighborhood Distressed for sale by owners advertise their short sales by placing signs on their property. Driving by an area to find short sale opportunities that someone else may not know about. Things to Keep in Mind When Purchasing Auction Properties
- Foreclosure auction sales require cash.
- Competition for foreclosures is high.
- Due diligence should be done prior to bidding.
- Don’t get caught up in excitement of bidding. Set a maximum purchase price and stick to it. Do not over bid because you may be sorry later on and end up paying for your mistake for many years.
- Make sure you have the title company do a title search and check for liens because you are responsible for paying off those liens if your bid is selected and you end up purchasing the property.
- You cannot get title insurance when you buy a foreclosure at an auction.
- You are also responsible for evicting the owner or current tenant. You may want to drive by the property first to make sure it is vacant.
- Properties are sold as is.
Purchasing Minneapolis foreclosure homes at foreclosure auctions is a great way to get a home at a cheap bargain price. While the majority of foreclosed homes purchased at auctions are great deals, you should always investigate the comparable sales prices in the area to make sure that your foreclosure treasure is a true bargain. A local Realtor can prepare a comparable market analysis for you at no cost or you can find recent sold prices online at various websites. Things to Keep in Mind When Purchasing REO’s
- Homes have already gone through the foreclosure process, and the bank has paid off the liens.
- You must use a Realtor to make your offer because REO’s are listed with local Realtors.
- Properties are sold as is.
- You can obtain financing or pay cash.
- You can conduct an inspection.
- Title insurance is available.
Things to Keep in Mind When Purchasing Short Sales
- Short sales are still owned by the current owner and have not gone through a foreclosure process.
- The seller must obtain their lender’s permission to sell you the home because the lender has to write off the different between the sale proceeds and what the owner owes them.
- Short sales are sold at discounted prices.
- Short sales are sold as is.
- You can purchase title insurance.
- Inspections are allowed.
- Short sale owners and lenders prefer cash buyers.
Short sales are sold at discounted prices. They are frequently in better condition than REO’s or auction properties because the owner or a tenant is still living at the property maintaining it. REO’s and auction properties are vacant and usually require repairs. If you are handy, you will save a bundle of cash by rehabbing the property yourself. With so many great opportunities to invest in Minneapolis foreclosed homes, there is no excuse not to purchase now. Whether you are a new investor or a seasoned one, first time home buyer or just looking for a bargain, Minneapolis is a perfect place to invest in foreclosure properties.