5 Tips for Buying Real Estate Seized by the Government

Government seized real estate is property that has been repossessed by the government due to non-payment of the mortgage by the owners.

A piece of real estate or a house can also be seized by the government due to tax evasion or illegal activities. Every year, thousands of properties are seized by the government.

Due to the continuous arrival of new real estate seized by the government, as well as the enormous amount of time and money required to market and maintain it, the government tries to recover even a small part of its money by conducting an investigation. public seizure of real estate by the government. property auctions.

In fact, government properties can be purchased for up to 90 percent of the property’s market value.

Here are some tips you can use when buying real estate seized by the government:

(1) Take the time to educate yourself on the different types of real estate, as well as the foreclosure process.

You can realize great savings during the “pre-foreclosure phase,” whereby the homeowner can avoid foreclosure while the lender can save money and time during the foreclosure process.

In which case, the property owner (seller) can “get out” of their mortgage and not have to destroy your credit rating, the government (lender) saves time and cost in foreclosure fees, and you (buyer) can get a “below market price”. price” of a property or home.

(2) Acquire financing early, because this ensures that you are in a good financial position to buy the property, therefore you are in a strong position to negotiate.

Another reason for this is that some lenders do not finance property seized by the government. So having approved financing in hand makes your negotiations easier and even allows you to cure a default by taking over the current loan to reduce processing fees.

(3) Consider having a real estate agent as your “buyer’s representative.” Therefore, the buyer’s representative cares about your interests and has the obligation to find the right property for you as well as to negotiate for you the best offer that exists.

Therefore, you need to find an agent who has extensive experience in foreclosure transactions, knowledge of regional, state and local laws to ensure you are in excellent hands.

(4) It’s important to do your research first, because when it comes to buying government seized property, timing really is everything!

(5) You must make a realistic offer. Lenders typically won’t just give away real estate, because the industry continues to climb higher.

Additionally, it can be difficult to transact with financially distressed homeowners, especially in the early foreclosure process.

As a buyer, if you are well educated, who can determine the amount owed on such a property, as well as its market value, and therefore can make a very realistic offer.

Buying government seized real estate is actually a great way to save dollars on your vacation home, next home, or as an investment property.

It can be riskier compared to buying traditional property. However, along with that certain risk you take, also comes the reward of huge potential savings. Just be wise, be well equipped in terms of knowledge.