Purchasing a Foreclosed Home

As of recent, foreclosures have been on the rise in some areas of the United States. Statistics from Realtytrac revealed a heavy spike in Maricopa county foreclosures in March of last year, and, as of December, 1 in every 9,586 homes in Maricopa county were foreclosed. Fortunately, these spikes are still not the highest that the US has seen in recent memory.


So what is a foreclosure?

A foreclosure happens when a borrower ultimately fails to pay their mortgage, forfeiting the property. This is the final step in a lengthy process and will only occur if the borrower is unable to pay off their outstanding debt or short sell the property.


What are the benefits of purchasing a foreclosed property?

For buyers, purchasing a foreclosed home has its advantages, which include but are not limited to:

  • Potential below-market prices due to sellers wanting to close quickly
  • A legally required, complete history of the property’s condition and any repairs
  • More openness from sellers to providing closing cost credits and other concessions
  • More openness from sellers to provide requested repairs


The bottom line

There isn’t a reason to exclusively seek foreclosed homes, however you may want to consider purchasing a foreclosed home if you’re looking to buy fast at a potentially low cost. However, do know that the seller may not be unable to negotiate a price below the outstanding balance of their mortgage.


I hope that this article has taught you a bit more about foreclosures and buying foreclosed homes. As always, I’m here for you if you have any questions on the topic or want to know a little more. If you want to reach out, please do not hesitate to contact me at 480-355-8645.

About the Author
Gina McKinley
Gina is an Associate Broker with Gina McKinley Group LLC and the Team Leader for The Gina McKinley Group. She is dedicated to selling homes in Arizona and passionate about providing the ultimate customer service experience through her expertise in the field. The Gina McKinley Group has served the Scottsdale and Chandler real estate market for over 25 years.