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Foreclosures can be a great way to acquire a property – they are usually a lot cheaper than any other properties on the market. Today, with the economy as it is there are a number of foreclosed homes in Wellington for sale. As someone who wants to save money, you may be looking at them as an option. Beware though – they can come with complications and it is up to you to do your homework before you buy. Here are some tips about buying a foreclosed property.
Wellington, PEI foreclosure listings
It may sound like an easy task to find Wellington foreclosures – aren’t there many of them around right now? It isn’t that easy. You have to know where to look if you want to find the right property. Click on the banner below to find up to date foreclosure listings in Wellington and surrounding areas.
Wellington Foreclosure FAQ
Q: How to buy a foreclosure in Wellington?
A: Generally buying a foreclosure in Wellington involves a few steps. These can vary from province to province so be sure to research the steps for your own area.
1. Pick a foreclosed property you are interested in buying.
2. Do all the research you can on the home. Some of them may not be available to view so be very careful. What you see on the outside is what you get.
3. The next step is to attend the auction for the property. This can be held at a the law office which represents the bank.
4. If you are the successful bidder you will be expected to provide a down payment shortly afterwards.
5. The final step is to arrange the remainder of the purchase with your own lawyer.
Q: Should I buy foreclosed homes in Wellington?
- Foreclosed homes can usually be purchased for less than market value.
- The property is usually vacant so possession can be within 30 days or less.
- If you are a property flipper, there is the potential for an investment gain when buying a foreclosed home.
- The home may be in a poor state of cleanliness as the previous owners probably had no incentive to tidy up before vacating the property.
- You may find there is no electricity or other utilities unless the bank has continued to pay for them.
- You may be stuck with the previous owner’s repairs & maintenance or lack of the same. If work was done without the neccessary permits you may have to pay to have it redone.
How To Find Foreclosures in Wellington
Whether you are looking in Wellington or the surrounding areas, there are several ways to find a power of sale home.
• The legal notices in your local paper will usually have auctioneers who are selling off Wellington foreclosures. The only problem is that they are not always legitimate. If you decide to use an auctioneer that you found in the newspaper make sure that they are a registered business in your province.
• Check on bank websites – some list the properties that they have for sale.
• Banks also hold auctions for foreclosed properties. This is a good way to find a home because there are many that you can choose from.
• Drive around your neighbourhood – you may come across something that you like that is foreclosed.
What To Look Out For In Wellington Foreclosures
The property that you are buying has likely been vacant for some time so definitely comes with some risks. In addition to that, you don’t know how the previous owner treated it. If you are lucky you may be able to find a property that was well taken car of. In many cases this doesn’t happen. Look out for the following:
• Vandalism isn’t uncommon in Wellington foreclosures. Thieves will break in to take anything that isn’t nailed to the floor. They also take wiring so look out for that.
• What time can you look at the home? In a way, the way you look at a foreclosed home is more important than the way you look at any other property – you need to have a very watchful eye. If you feel rushed it could be that the bank or auctioneer doesn’t want you to see something.
• Before a foreclosure Wellington procedure, ask if there are any disclosures that the seller needs to make. These usually have to do with lasting damage so you should enquire quite keenly. In addition to that, are there warranties that they need to show you? Things like roofs usually have years and years of warranty and you need to get the actual paperwork in case you are ever to make a claim.
• Are there any hidden issues? These can vary widely. It could be something as simple as a leaking sink or something as serious as a sink hole.
• Has the redemption period expired? The owner of the home has a period after foreclosure during which he can pay a certain amount and get his home back. If you buy such a property you will have to give it back – needless complications, really.
Tips For Buying A Foreclosed Wellington Home
There are certain things that you can do to make it easier to buy a foreclosed property:
• Budget properly. Many people who buy foreclosed properties often end up failing to budget properly and this can be damaging. Most of these homes often need extensive repairs so you should bring in an expert to do an inspection and tell you how much you will need to spend before the property can be lived in.
• You need to see the house yourself – these homes cannot be bought sight unseen. If you cannot go yourself then you have to send someone in your place to evaluate the property.
• It is important to inspect not just the property but also the neighborhood. You want a home that is in a safe area and also that isn’t surrounded by too many other foreclosed homes, especially if you are buying to repair and rent – you may not be able to get tenants. If you have kids you should consider things like schools, recreation, quick shopping, hospitals and so on.
• The longer a home has been empty the more the repairs it requires – everything falls apart over time. If you can, find a property that was foreclosed not more than 30 days ago.
• Always find out whether the home was winterized – don’t rely on an oral answer. Instead, ask to see the paperwork. It the pipes were not treated in winter there is a high likelihood that when you turn the taps on they will crack and water will leak into the walls leading to mold.
• The landscaping is also important. If it hasn’t been done for a long time it can affect the condition of the home. Creeping vines, for instance, can damage window frames. You also want a house that had regular landscaping done because it will cost you less to fix the outdoors.
• If you will be buying from an auction it is very important that you set a bid ceiling in advance. Auctions move very fast and you may fond yourself bidding more than you can afford for a foreclosure in Wellington.
• Consider a pre-foreclosure before you deal with bank foreclosures. This means that you approach the owner of the home right before the property is foreclosed and offer to buy it from him. It is a good way to get a property but beware – owners are sometimes not easy to deal with as this is a stressful time. If you choose to go this route make sure to check if there are any liens against the property.
These tips should help you find and purchase a foreclosed Wellington property with ease.
For more information on foreclosures in PEI please click here.