How to Buy a Foreclosure in Phoenix

In Phoenix, foreclosures are selling for as little as 1% below the asking price to a whopping 50% below market value.  To purchase a Phoenix foreclosure, simply follow the following series of steps to buy foreclosures in Phoenix. 

1. Get prequalified to purchase a foreclosure.  Know how much you can qualify for and the type of financing that you are eligible to receive.  Different types of mortgages may restrict you on the type and condition of the home that you can purchase, how much you may be required to put down as a down payment.  Furthermore, certain types of financing allow for you to rehab a home, finance fix up costs, and replace outmoded appliances as part of the mortgage.

2. Call Rob Madden at 480-888-1234.  Begin the search process by exploring your options.  Together he and you will go out and examine the variety of homes available to you, discuss the pros and cons to the different options available, and help you put together a comprehensive strategy that fits your needs, wants, and schedule.

3. Upon finding the right home, negotiate a contract on the home.  Together with Rob, you will be able to make sure that the right conditions, terms and contingencies are included in the offer...such as making sure there are provisions for financing contingencies, inspection conditions, terms for the seller to pay for your closing costs, and a host of other inclusions to an offer to purchase.  With Rob, price the home according to the market...look at the homes that have sold, examine the pricing trends for the current market (both short term and long term trends), and make sure that you are comfortable with the price that you may ultimately pay.  If the price of the home is too high for you, don't buy the home.  Finally, expect the bank to counter the offer, usually with a counter offer or required addendum that will include language limiting the bank's liability in disclosure and responsibility to correct any deficiencies with the home.

4. Finalize your loan with your lender.  Once the offer is accepted, work with your lender to make sure that they have the necessary paperwork to underwrite the loan, including paystubs, bank statements, tax information, and any other information necessary.

5. Inspect the property.  In the contract, you will be given adequate time to have the property professionally inspected by a licensed and qualified home inspector.  Don't necessarily limit your inspection to a home inspection.  Other types of inspections include termite, sewer, mold, lead based paint, and a host of many others.  Most banks, however, will sell their foreclosures "as-is".  As Is means that the buyer is purchasing the home without any expectation that the bank will complete any repairs on behalf of the buyer...what you see is what you get.  In many cases, though, Rob has been able to work the system to have vital and important inspection issues resolved by having the bank pay for certain repairs.

6. Close the deal.  After the inspection period, the remainder of the process involves in the final execution of the contract including verifying that title can be clearly transferred you, a final inspection of the property prior to closing, and signing of all of the closing documents.

To sign up to search for free for Phoenix foreclosures click here.

To talk to Rob Madden about how to go about buying a foreclosure or to talk about different strategies, the process, or any other question, give him a call directly at 480-888-1234.