There is a large supply of bank repo and foreclosure properties in Kansas City, MO right now. Foreclosure listings can be found on the local MLS, newspapers and Internet websites. It is recommended that you work with a Realtor that specializes in REO (real estate owned) properties to locate foreclosed homes in the Kansas City, MO and surrounding areas. Foreclosure auctions are also places you can purchase foreclosed houses. Unless you have experience purchasing homes at foreclosure auctions, it is recommended that you bring someone with you that knows how they work. Buying an REO (real estate owned) property is easier for first time homebuyers or new investors and less risky
Kansas City short sales are also worth considering because they are sold at discounted prices as well.
What You Need to Know
A few things to keep in mind about purchasing foreclosed houses in Kansas City, MO:
· The majority of foreclosed houses are in need of repairs.
It is not unusual to find kitchens that have been stripped and bathrooms missing toilets and vanities. Angry former homeowners take appliances and other valuable items out of the homes before they are evicted so you will find many foreclosure properties missing full kitchens, cabinets and flooring, hardware and more.
Be sure to get a home inspection so you can find out the condition of the home and allow for any repairs.
Budget repairs into the cost of the home. If you are handy and can make repairs yourself, all the better.
· Pre-foreclosed homes are not the same as REO foreclosures.
Pre-foreclosed houses have not gone through a formal foreclosure process. They are still owned by the current homeowner who can no longer afford to make their mortgage payments. The sale is conditioned upon the approval of the homeowner’s lender. Pre-foreclosed homes are also referred to as short sales. If the home is not sold as a short sale, then eventually the lender will foreclose on the home and it will become an REO (real estate owned) property.
· Foreclosure auctions are open to the public.
The highest bidder is awarded the property. Unlike REO’s, homes purchased at foreclosure auctions must be paid for in cash at the end of the auction. You cannot obtain title insurance on homes that are purchased at property auctions. Also, you are responsible for evicting any former owners or tenants.
· All Kansas City, MO foreclosed homes are sold at reduced prices so they can be good investments if you research the market and educate yourself on home prices in the area.
When you purchase Kansas City, MO foreclosed houses, you are getting properties with built in equity. Right now buyers/investors should take advantage of Kansas City, MO bank repo and foreclosed properties. There are also opportunities to purchase government foreclosures and HUD foreclosure homes at deep discounted prices as well.