By now just about everyone has heard about the devastating housing crisis that has shaken the American economy to its core. More and more people are in foreclosure on their homes, or are in danger of foreclosing soon. While this is undeniably bad news for the American economy as a whole, and of course, for the homeowners who are in foreclosure or in danger of foreclosing, many people see a silver lining in the real estate market collapse because it means cheaper home prices. If there’s ever been a buyer’s market, that time is now. Many people also think about negotiating directly with sellers in foreclosure in order to get the best deals, but there are several pros and cons to that.
If you’re thinking about negotiating directly with a seller (or sellers) in foreclosure, you should at the bare minimum acquaint yourself with the laws surrounding foreclosure. In some states, people who have defaulted on their mortgages and are in foreclosure on their homes don’t have to leave for a long time – sometimes as long as a year. If you negotiate directly with a seller in foreclosure, be sure you know what your rights are as far as occupancy and taking possession of a foreclosed home are concerned. The last thing you want is to go through a complicated purchase process and then get into some sort of a messy eviction drama with the home’s former owners.
Negotiating directly with sellers in foreclosure also has special stipulations that, should you overlook them, can result in serious legal entanglements. Homeowners in foreclosure have a whole host of legal rights that have nothing to do with normal home sales.
Before you begin negotiating directly with sellers in foreclosure, be sure to speak with a qualified real estate professional and get their tips and advice. You need to know what you’re doing before you being negotiating directly with sellers in foreclosure.