In Connecticut, there are two kinds of foreclosures: a strict foreclosure and a foreclosure by sale. A strict foreclosure involves a creditor regaining control of a home with no equity. The original homeowner has up to five months to pay their outstanding debt before the lender obtains control of
the Greenwich foreclosure.If a property has equity, creditors initiate a Greenwich foreclosure by sale. A Greenwich foreclosure by sale involves a public auction in which the creditor tries recover their debt by selling the home to an interested buyer. This process can take up to three months.Purchasing a Greenwich, CT foreclosure is a smart investment if the property is in good shape and the asking price is relatively low. Read below to learn how to purchase a Greenwich, CT foreclosure.Step 1 – Figure Out Your FinancesFirst, you’ll need to figure out how you will afford to buy a Greenwich foreclosure. Prepare a budget that takes into account not only the foreclosure’s monthly mortgage payment, but also insurance, property taxes, and applicable back taxes.Step 2 – Get Pre-ApprovedIf you’ve determined that you can afford to buy a Greenwich, CT foreclosure, the next step is to research possible lenders and get pre-approved for a Greenwich Connecticut mortgage. Compare several lenders and choose one that is trustworthy, reliable, and has good customer service. Then, get pre-approved for a purchase mortgage, if needed.Step 3 – Property InspectionNext, closely inspect the property with an expert. You do not want to purchase a Greenwich foreclosure that needs a lot of repairs and extra labor (unless fixing up a run-down home is a passion of yours and you have the financial resources to do it). Since many foreclosures sit empty for months, be sure to inspect for damage due to as leaks, mold, or vandalism. Make sure that the property has good potential resale value, if you intend on flipping the home.Step 4 – Neighborhood InspectionBefore you buy a Greenwich, CT foreclosure, you’ll want to make sure that it’s in a safe, quiet neighborhood. Drive by the home during the day and at night to get a good feel of the neighborhood. Make sure that it is well-lit at night, in a convenient location, and that there aren’t multiple foreclosures in the neighborhood. If there are more than 3 or 4 foreclosures in the neighborhood, it could indicate that the area is not safe or well-kept.Step 5 – Don’t Go to the Public AuctionEven if you are interested in purchasing a Greenwich, CT foreclosure, don’t do it at a public auction. Auctions limit potential buyers in a number of ways. First, you don’t get to fully inspect the home if you buy a Greenwich foreclosure at a public auction. Secondly, if you decide to buy a Greenwich foreclosure at a public auction, you often must do so with cash. Skipping the auction and waiting until the foreclosure is put on the market allows interested buyers the time they need to get their finances in order, get pre-approved for a purchase mortgage, and fully inspect the home and neighborhood to ensure that the foreclosure is a smart investment.
Did you enjoy this post? Why not leave a comment below and continue the conversation,
or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment