5 Things You Should Know About Buying Foreclosures in Fort Collins

An interesting way to invest in real estate is by buying foreclosures in Fort Collins. You see it on reality TV shows where investors can pick them up at a low cost, invest some money in repairs and upgrades, then turn around and sell them for a large profit. There are five things you should know about buying foreclosures in Fort Collins.

Inventory is Dropping

The first thing you should know about buying foreclosures in Fort Collins is that the overall availability of foreclosed properties is shrinking. There are fewer and fewer foreclosures every day, and the ones that are available are getting snatched up by cash buyers that move extremely quickly. We can help you locate foreclosures in Fort Collins, give us a call at (970) 744-4944 right now.

Buying at Auction

Unless you are an experienced real estate investor with a large amount of cash to drop on a property, buying foreclosures at an auction is probably not a good idea. At the foreclosure auction, you are not allowed to enter the house nor have it inspected, so if you do win the property, you have no idea what condition the building is in and you may ultimately lose out. 

Buying Bank-Owned

You can still get a good deal on a foreclosure if it is bank owned, but you may have to make a higher bid if other foreclosures are selling fast. This means other people are buying up foreclosures quickly, and if you really want to get in on this action, you may have to start off with an offer that is close to, or at asking price. If there are multiple offers, you may have to offer higher than asking price and try to keep the contract contingencies to a minimum if you really want that foreclosure. Remember, location and amenities matter, other foreclosures may be selling quickly if they’re in a great spot.

Get it Inspected

In most cases, the seller of a foreclosure is a bank, so there is not a traditional seller to make repairs before closing. The bank will not likely fix anything wrong with the home. They are selling it to try to make as much money back on their investment as possible. Make sure you include an inspection contingency so you can hire an inspector if you are making an offer on a foreclosure, that way you will know exactly what you are getting into if the bank accepts your offer. 

Hidden Costs

Buying foreclosures in Fort Collins may come with additional costs above and beyond the purchase price and closing costs. If the owner couldn’t make the mortgage payment, you can probably assume he or she did not pay the real estate property taxes or homeowners association fees if the foreclosure is in a community. You might also become responsible for any utility bills, home equity lines of credit, or other liens on the property. Make sure the title company takes these factors into account when preparing the title commitment. 

You will also have to take into consideration the additional cost of making the necessary repairs or cleaning when you buy a foreclosure. There is no cleanup requirement when these properties are seized, and the previous owners might be a little upset about the bank foreclosing on them and take it out on the property. Repairs to the home might also increase the assessed value and raise the taxes.

At NoCo House Buyers Inc, we make it easy to buy a foreclosure. Call us today at (970) 744-4944 or send us a message to discuss these things you should know about buying foreclosures in Fort Collins. We can find the perfect one for you!

Blake Stevens

About Blake Stevens

I grew up in Fort Collins, I lived in Loveland and I’ve worked and played sports all over Northern Colorado. I love our area, NoCo. Our company borrows money from private lenders so that they get a good return secured against a hard asset they can see and understand. We take a problem property off a sellers hands and get them the cash they want. We fix up the worst houses or even just average houses and make them the gem of the neighborhood, which improves our community one house at a time. We put trades people to work and stimulate the local economy. We partner with people looking to get a return on their capital in long term rentals providing quality housing while earning a good secure return. All around it’s a win, win, win business that I love.
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