Buying a Colorado Foreclosure Property: What You Need to Know

Colorado Foreclosure Contracts

smarnad |

You can often get a wonderful deal on Colorado foreclosure properties, purchasing for far below the appraised value. However, before attempting to purchase any foreclosed property in Colorado, there are several things you’ll want to consider.

Be Prepared to Make Improvements

Most of the foreclosed homes you can purchase in Colorado will be sold “as is,” meaning that there could be damages, issues that need to be taken care of and more. You can’t be sure whether you’ll need to end up replacing the HVAC unit, repairing a broken wall, or having the pipes looked at. Make sure you have some extra cash on hand to make improvements and repairs upon buying the property. While any problems should be disclosed before the purchase takes place, sometimes you can be surprised with additional issues.

Get Pre-Approved

Many banks and mortgage companies will require you to be pre-approved for a loan before you ever make an offer on a foreclosed property. This ensures them that they will receive the money they’re asking, since they’ve already lost money on the home and are currently paying fees to maintain it. Most will not accept any sort of contingency, either.  Go in and apply for financing, and determine how much you’re approved for before making offers on Colorado foreclosures.

Get Prepared to Battle 

One of the greatest things about foreclosures is the low price, and this low price draws many interested individuals. Therefore, the property you’re interested in might have several offers. You’re going to want to determine the maximum amount you’re willing to pay for the property and make that offer right up front. With most foreclosures in Colorado selling within 7 days of being on the market, you have to be serious about an offer and ready to beat out the numerous other potential home buyers.

Get Your Signature Hand Ready

Finally, you’re going to want to be prepared to sign a huge stack of paperwork. In addition to the typical Colorado purchase contract, banks that are in charge of foreclosures typically have a very large amount of paperwork as well. Sometimes, you’ll need to have the paperwork all signed within 24 hours, so it’s imperative to stay in close contact with your agent and ready to sign at a moment’s notice. Your agent can go over the meaning of each page as you sign it, and will also ensure that you don’t miss anything; even one missing page could cause your offer to be rejected.

Purchasing a Colorado foreclosure property is a wonderful way to save money on the purchase of a home, but it also comes with some unique challenges. If you’re prepared for those challenges, you’ll have a greater chance of getting the home you want and not losing out to other potential buyers.

Got something to say? Go for it!