Foreclosures from $44,900 are available in Montgomery County, MD
Foreclosures from $44,900 are available in Montgomery County, MD -Germantown to Rockville. Use the link below to view property descriptions, photos, maps and community information.
Buying a foreclosed home is different from buying a regular resale.
The seller (Bank) wants a preapproval letter from a lender before accepting an offer. There are often multiple offers and banks will ask for your "highest and best" offer. There is room for negotiation depending on property and price. The home comes in "as is" condition and the Bank will normally not pay for repairs.
On the upside, most bank-owned homes are vacant, which allows for a quick inspection and can speed up the process of moving in.
Buying a foreclosure can be a bit a bit of a grind. You can get a great deal, but you may have to look at a lot of houses and submit multiple offers.
Nationwide, about one-third of sales in 2010 were of distressed properties. A big chunk of those sales went to first-time buyers, according to Lawrence Yun, chief economist for the National Association of Realtors. "First-time buyers are concentrated in the lower price ranges, which include most of the distressed sales," Yun says.
The first step in buying a foreclosure is to get a preapproval from a local lender. The next step is to find a Real Estate broker who speciailizes in bank owned properties. Your broker can then search the inventory and use his or her contacts to provide you with available properties. Many properties can not be financed due to poor condition, so if you have access to cash, you will have more opportunities to purchase.
Advantages and Disadvantages to Bank-Owned Property REO (Real Estate Owned by Lender)
- Bank is motivated to get property sold and will negotiate price, down payment, closing costs, escrow length, etc.
- Title will be clear; buyer will not take on any liens, mortgage or back taxes of prior owners.
- Inspections and mortgage financing are allowed within normal due diligence/contingency period.
- House will be vacant.
- Property will usually be listed on MLS; bank will pay real estate agent's commission.
- REO sales close within a normal escrow period of time.
- Bank will not agree to do any repairs; as-is sale.
- Bank will usually require additional paperwork.
- Bank cannot provide disclosures as to property history/condition issues.
Questions- Call Rick Reed 301-528-REED (7333)
Rick Reed, G.R.I., CDPE- Certified Distressed Property Expert
Assoc. Broker/Owner "The Congressional Team" RE/MAX
Licensed in MD & Wash DC
8937 Shady Grove Court
Gaithersburg, MD 20877
Office: 240-403-0399 X306
Can I help a friend or family member with their Real Estate needs? You can count on me!