Buying a Foreclosure Home at Auction - Some Advice

This article looks at what happens after the auctiontitle company to ask for this information and do not
and you have signed the purchase agreement on yourclose until you have a letter from them.
new foreclosure investment property. There are someMake you take out home owner's insurance. Your
things you need to remember at this point and theymortgage company, if you are using one will require
are listed here.you to have set up this insurance anyway before
The first thing you should do is a few days before theclosing on the property. Just get a 1 year policy and
closing date, is to review the closing papers. The titlebring the receipt to the closing, you can always shop
company should be able to provide you with thisaround for a better deal later, the important thing is to
documentation. The next thing to do is to make surehave coverage. You can reduce the cost of this
there are no outstanding utilities bills attached to theinsurance if you increase the deductible you are liable
property. Call each utility company and request anyfor before any payment is made to you. You can also
outstanding balances. It is important to tell theconsider insuring the property for the price you paid for
companies what date you plan to take ownership ofit rather than the value it is estimated as having on the
the property to avoid paying for utilities that you did notopen market.
use. Often, the water bill is attached to the house andGet the utilities transferred to your name. Get this done
sometimes included in the property taxes. Make sureas soon as you can after the closing date. Call the title
the vendor pays the water bill prior to the closing datecompany and get them to send you a copy of the
to avoid a potentially big water bill upon closure.recorded deed. It will be date and time stamped and
It is also a good idea just before closing to have a lookhave the recoding information. The official recording of
inside the property to ensure all is as it should be.the deed may take a few weeks but this copy is
Ideally you have a relationship with the vendor andgood to have in the meantime. In some cases this
they will be happy for you to quickly check theinformation is available online.
condition of the property. If you can't get access thenFinally, make sure you obtain keys to the property and
you should seriously consider stopping the completionyou are all done. Congratulations you have completed
until such time as you can have pre-closing access.the process and are now in possession of a
It is very important that you verify the title insurance.foreclosure investment property. Hopefully this article
This protects you from unexpected claims on thehas provided some useful tips as you move to closure
property immediately after closure. You should call theon your new investment property.