How to Buy a Foreclosure in South Jersey

Buying a foreclosure in today’s market is a great way for buyers to find the perfect home in South Jersey.  There are many foreclosures in popular South Jersey towns such as Mount Laurel, Medford, Marlton and Cherry Hill, New Jersey.

Locating Foreclosure Homes in South Jersey

There are many websites where you can find foreclosure homes in South Jersey.  Some of them are free, but most of the good ones require a paid subscription.  It is a good idea to play around with several, until you figure out which one works best for you.  Two of the most popular foreclosure sites are foreclosure.com as well as RealtyTrac.com.  Both of these sites offer a 7-day trial.  If you have a foreclosure realtor in mind, they would be able to send you foreclosure properties as well.

Different Types of Foreclosure Homes

There are different types of foreclosure homes for sale in South Jersey, and depending on your situation, some may or may not work for you and your family.  Keep in mind, most foreclosures will need work and updating. Here are the 3 basic types:

  • Short Sale Properties – Beginning stages of foreclosure.  These properties often take a few months to over a year to close depending on the bank, how far along they are in the process and number of mortgages.  These homes are great for investors who have patience and flexibility.
  • REO or Foreclosure Homes – These properties are the ones that are now officially bank owned.  These properties can  typically close in 45-60 days, and sooner if you are a cash buyer.
  • HUD Homes – These properties are the FHA government backed loans that went bad.  These homes typically can close in 45-60 days as well, and priority is given to owner occupants (buyers who want to personally live in the home for 2 years).

Tips when Purchasing a Foreclosure Home

Buying a foreclosure in South Jersey, doesn’t have to be a scary venture.  Make sure you follow these basic tips, so that you can feel more confident in your purchase:

  1. Work with a South Jersey realtor and/or attorney who is a Certified Foreclosure Specialist or has some level or background of working with Foreclosures, Shorts Sale and REO Properties.
  2.  Educate yourself with as much information as possible.  Understand the different types of mortgage out there and what types of financing and programs you are eligible for.  Research neighborhoods and communities as you normally would in purchasing real estate, as it is imperative to make sure you know the area personally. Drive through the area to see potential homes before involving a realtor.  Many foreclosures may be in areas or neighborhoods that you do not like.  This way you can narrow down the list, so that when it is time to get serious, you are seeing the foreclosures that really appeal to you.
  3.  Be honest with yourself and your situation.  Some foreclosure properties will require patience and waiting.  If you have a family that needs to be in the home in a certain time, short sales may not be the way to go.

Keep in mind, with a foreclosure home, you are given as much protection as a buyer as any other residential property.  You will be allowed a home inspection, which is highly recommended that you take advantage of this.  Having a home inspection will allow you to know what issues the house may have, and should you need to get out of the contract, will allow you to do so.  Also, as you move through the process, you have hopefully aligned yourself with good realtors and attorneys to make sure that the transaction is smooth and everything is taken care of.

About Jessica JessicaHoltzman

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