How to Buy a Foreclosure

• Look at the property. Some u
  nforeseen problems can be spotted if you take a peek at the property and at the title. The 20% you are saving on the purchase price may seem like a good deal, but if you don't look inside the property you may be in for an unpleasant surprise. We often see homes in pretty bad shape after they go into foreclosure. Families who have been financially strapped don't have the means to make repairs or any maintenance on the property.
• Look at the title. Search the title and public records for any outstanding assessments, unpaid utilities, sewer, and water bills. Upon closing your attorney will perform a full title search. Making sure there is no leins or assessments against the property, whatever there is will need to be paid off before. Even though the leftover bills are not technically yours, they will need to be paid before anyone moves in.
• Get a property inspection. Not all damage done to the house is visible. It is a good idea to contract for a private inspection. If you are buying a super-cheap home, it is a VERY good idea to to get it throughouly checked out. Typically home inspections can be performed in under an hour. Any repair costs should be used in your negotiations with the bank.
• Contact the city for current tax and assessment information. Check on the cities taxes and assesments information and also if any association fees exist. Check with the city and Crow Wing county for any unpaid utilities, water and sewer bills.
• Don't expect to to turn around a profit right away. Investors who buy intending to do as little as possible to a house, hoping to resell for a profit when the market turns around, may find small profits and a big headache. Some cities are starting to penalize neglectful property owners, charging penalties that increase over time. Investors are welcome in this market. Most are fixing up the houses they buy for rent or resell. Some experts believe this is what could turn around those neighborhoods most effected by a heavy foreclosure saturation. What's more, investors and new owner-occupants might get the satisfaction of helping to turn a hard-hit neighborhood around.

1. Call the city and county. Ask them if there are any assessments for unpaid utilities, sewer and water bills.
2. Is there a septic tank or well on the property?
3. How long has the property sat empty?
4. Was it winterized or well prepared for sitting vacant?