If you are looking for an opportunity to find quality pre-foreclosed homes, McAllen, TX is a good place to start. It’s located in Hidalgo County on the southernmost tip of Texas. Known as a multicultural community it offers its residents a semi-tropical climate, great dining, shopping and sightseeing. If you want to experience the South of the Border, McAllen is located near the Mexican towns of Reynosa and Nuevo Progreso. McAllen is one of the fastest growing areas. As of the 2010 census, the population was 132,250. Since 2000 it has experienced a 24.39% population growth making it a perfect choice for buyers/investors.
Coupled with the recession that we experienced and record number of job losses, millions of people are struggling to make their mortgage payments and many are upside down on them. McAllen has not escaped this crisis like many other communities. Therefore, there are many short sale opportunities for buyers/investors in the area. Pre-foreclosure/short sales are properties that are still owned by their current owner who is experiencing a financial hardship and needs to sell their home. The only caveat is they owe more on their mortgages than their homes are worth because of declining home prices the past few years. Therefore, they need their lenders’ approval to sell their homes for less than they owe their lenders. While lenders are approving short sales to avoid foreclosure costs and save time, the process takes about 3-6 months or longer. So you need to be patient. You also need cash to purchase most short sale properties so you should have your money ready to close when the lender is ready.
Work with a Realtor
Working with a McAllen Realtor will save you a lot of time and hassle finding pre-foreclosed homes in the area as well as bank foreclosed REO’s. The Realtor has access to the local MLS and networks with other brokers and sellers in the area so they know the inventory that is available that is listed and not listed in the MLS in their area. They can direct you to the right property that meets your criteria. The Realtor can also refer you to vendors such as a home inspector, surveyor and contractor.
If you have time you can surf the Internet and check the local newspapers for owners selling on their own, as well as drive the area you are interested looking for signs that say pre-foreclosure or foreclosure. The foreclosure properties have already gone through the foreclosure process and are bank owned. The pre-foreclosure properties take a little longer to close because they need the seller’s lender’s approval. Both foreclosed houses and pre-foreclosed houses are good opportunities because they are sold at discounted prices below market value.
Home Inspections and Surveys
You should always obtain a home inspection and order a survey so you know the property condition and you can determine the property boundary lines and whether there are any potential encroachment problems with neighbors such as fences or other structures or shared property driveway easements. You will also receive a title report which gives you information on the title and whether there are any use restrictions on the property from prior deeds.
Investing in McAllen, TX pre-foreclosed homes right now allows you to purchase a property in an area that you may not have otherwise been able to afford a few years ago. You get a property with a built in equity because you are purchasing the property below market value. Now is the best time to invest in McAllen pre-foreclosed houses while the prices are affordable, interest rates are low and inventory is abundant.