Before you jump on the Idaho foreclosure bandwagon
With all the talk about Idaho Foreclosures we as Realtors are being bombarding by buyers looking for the "Best Deal" and want to buy one of those foreclosures everyone is talking about. Before you run out and buy one of these there are some things you need to know. Hopefully these tips will help you in negotiating for and purchasing a foreclosure.
First of all there are two basic kinds of Idaho foreclosures. The first kind of foreclosures are those that the bank which made the loan on the subject home already owns the home and is marketing it. You can apply for financing on these properties just like you would do with any other home. Many of these homes need some kind of repair. The repairs can range anywhere from cosmetic to some major electrical, plumbing or structural. When you purchase one of these foreclusures typically listed by local Realtors you are wise to take advantage of your right to conduct a home inspectoin. The bank which owns the property will likely have you sign an addendum that says they will do no repairs but you still have the right to do an inspection and cancel your contract if many flaws are found. Many buyers waive their right to do an inspection which in my opinion is a big mistake. Major repairs could end up costing you more that the home is worth. Be careful and complete your inspections in a timely manner. Speaking of inspecitons. Do not do these yourself or hire your buddy. Please hire someone who has the property credentials to conduct these inspections. Here is a list of my preferred vendors.
The other kind of foreclosures are the kind that are being auctioned off in the form of a "Trustee Auction". These auctions are typically conducted by title companies where one or more bidders can bid on a specific property. The bank which had the loan on the property will typically submit a "minimum bid" or basically their own bid at which they will buy the property back. The individual conducting the auction will read the banks minimum bid and any bidder must bid above this amount. The winning bid MUST PROVIDE PAYMENT IN THE FORM OF A CASHIERS CHECK AT THE TIME OF THE SALE. In addition, the winner bidder will receive a "Trustees Deed" which warrants nothing. Your are basically gambling that the home will be in reasonably good condition and that you can cover any unpaid real property taxes or irrigation bills due. It is imperative that you talk to a Realtor that is a Foreclosure Specialist and has experience in dealing with these foreclosure sales. Doing so will save you a mistake that could end up costing you more than you ever bargained for.
Buying a foreclosure can be a great experience if you know what you are doing. Good luck to you and yours.