Buying foreclosed property is the way to go if your plan is to save money. But saving money is only a dream if you don't have this information.
Even if you find an almost free foreclosed home there are costly mistakes people make everyday. Be armed with this knowledge and truly get your dream home without nightmare cost!
1.) Over Bidding
Over bidding is a mistake that happens very often. Lack of planning before hand can be costly.Once you bid over the asking price the pre existing appraisal can not be used and a new appraisal is required.
It's best to bid the asking price or a little lower to avoid problems (cost) from a new appraisal.
2.) Taxes
Many people that are not aware that certain state transfer taxes from Federal Government ownership to a private buyer are waived. Causing many to over pay on transfer taxes of the foreclosed property.A majority of lending companies are unaware also because of the small amount foreclosure transfer they do. You have to make sure they know the rule in your state in order to save this money.