There are three ways to purchase a foreclosure home in Clarksville TN. You can buy a pre-foreclosure home directly from the seller, purchase a property at auction in Downtown Clarksville, or make an offer to the bank through a local Realtor after a property does not sell at auction.
Buying a Pre-Foreclosure – Purchasing this way can be risky because the bank may foreclose on the home before you can get to the closing table. There may also be title issues with the property that the seller may not tell you about. These properties are not advertised in advance, so finding one may be like finding a needle in a haystack.
Purchasing a Property at Auction - This option also comes with risks. It can turn into a full time job with all the research you will need to do. Many times you are unable to access a property that is going to auction. This makes it difficult to fully inspect the property and determine the amount of repairs needed. Auctions are often postponed or cancelled by the lender at the last minute. This can be frustrating after you have spent countless hours tracking the auction in the paper, determining how much you are willing to pay for the home and coming up with the after repair value. All the time and money you spent on inspections and title searches is wasted just like that. The other risk at an auction is that you will be out bid, or you over bid on a house because you got into a bidding war with another buyer.
Buying From the Bank After the Auction – The easiest and safest way to purchase a foreclosure in Clarksville is to work with a local agent that knows the market and is an expert in the field. Your first step is to locate an agent that you feel comfortable with and meet with them to discuss your needs. You supply them with your search criteria and they will begin contacting you when that type of home comes on the market. Foreclosure listing agents have homes they have been assigned, but are not ready to list yet. Partnering with one of these listing agents will give you the benefit of knowing about deals that are coming on the market soon. This allows you to act fast as soon as a home is available for offers.
After the meeting with your agent, you should get your finances together. If you need to get a loan for the purchase, go ahead and contact a lender so you will be more prepared than the next person when that great deal comes on the market. There are a lot of great lenders in the Clarksville TN area. Your agent should have a few reccomendations if you do not have a relationship with one already. If you are paying cash, go ahead and get a proof of funds statement and have it ready when your agent calls to tell you the perfect home has just come on the market. Many foreclosures in Clarksville go quickly. I have received 10 or more offers on foreclosure properties in the first day they come on the MLS. All banks are going to want a commitment letter from your lender or proof of funds before they will even consider your offer.
Buying a foreclosure this way is safe because you can include an inspection contingency with your offer. This allows you to inspect all of the systems of the home before you move forward with the transaction. If you find anything major, such as structural damage, then you can terminate the offer and move on to another home. You can also get title insurance when you buy a foreclosure this way. The bank will pay off any liens on the property before closing and you will be insured against any future claims against the home.
Foreclosures can be a great investment to live in, flip or rent. Whichever avenue you decide on requires it’s own strategy and a good agent can help you outline that strategy and make a wise decision that will pay you handsomely down the road.
If you would like more information about buying a foreclosure in Clarksville TN, or the surrounding areas, give me a call. I am a local expert in the field, licensed in TN and KY, and will be happy to meet you at my office and discuss your ideas over a cup of coffee.