Almost everyone who comes to me looking for a home asks about foreclosures. They want the American Dream for cheap and there is nothing wrong with this but most that take this approach spend more for a home than Market Value by the time they are finished. Buying a foreclosure can be an excellent way to get houses apartments lands, houses homes, Real Estate, but you will need to know one thing- IT IS HARD WORK and then IT IS MORE HARD WORK. The up-front costs and Interest rates are higher, but with a little common sense and hard work you can come out of the process with equity.

Remember Banks do not want to foreclose on people, it generates RMAs, which reflect on the lender and reduces their borrowing power and lending requirements. They will work with people in order not to foreclose. ( I had one client that it took almost a year to sell the property, because we contacted the bank diligently, and updated them, they stalled the foreclosure.) This allowed us to get the property sold in a bad market period. 

Almost all foreclosures fall into disrepair because of lack of maintenance or outright vandalism. People do not like it when they lose their properties they often take it out on the home justifying their actions. Foreclosures sit for long periods of time while lawyers shuffle paperwork.

 If you do not have the money to make the repairs, you will have to finance them. Construction and 203k loans always cost more at the settlement through points and interest rates. Inspectors and consultants will have to be hired to create reports and guidelines. These will be needed for the contractors bid submission reports to the lender. All of these fees will have to be paid up front.

Then there is the contractor, a person you will be married to for a long period, whom you will have a love hate relationship. It does not matter how good the contractor is, it is a long difficult process and at some point in time nerves will be frayed. Things will be delayed and costs will increase because of unseen problems linked to working on older homes.

But in the end with a little savvy, finesse, and diligence you can create a home, to your specifications, and possibly create a little equity or profit for yourself.

I have advantage over other realtors in this in that I used to be a general contractor before I was a realtor. I have created with my own hands and have lived the entire process many many times. It is hard but the American Dream is not easy and those that achieve this self actualization realize the happiness that this can bring. 

Below are links to listings for foreclosures, I will be contacting lenders that I have worked with who specialize in this process and adding there links below. Check back occasionally for updates of resources.

Thank You

John Norton Realty Executives of DC

Washington DC Homes for Sale

Maryland Homes for Sale

Virginia Homes for Sale