Buying a Foreclosed Home in Colorado
While buying a foreclosed home is a great idea, the process can be a little overwhelming, especially if you’re not familiar with the home buying process and the legal terms. Even if you’ve purchased a foreclosed home before, the procedures can vary state by state.
Let’s look at the steps for buying a foreclosed home in Colorado:
6 Steps for Buying Foreclosures in Colorado
1. Get lists from your agent on active foreclosures or pre-foreclosure properties
2. Be ready with your cash or financing, investment properties typically require 25% down.
3. View the property, count on repairs needed. Keep in mind, utilities may be off.
4. Make an offer… These are typically not on Colorado state approved forms, they are on bank contracts. Important for you to discuss what that means with your agent and possibly an attorney.
5. Once you win the bid, you will need to do a full inspection. Your agent will help you get utilities on, if possible. You need to count on the property being sold in as is condition.
6. Get to closing… Be aware of deed type and redemption periods.
My first home was a foreclosure, you can find a good deal, you may also find a better deal that’s in pre-foreclosure or with a motivated seller. It’s all situational and about timing. You need a pro to guide you, contact me for a consultation.