Is It A Good Idea To Buy A House In Foreclosure? (Important)

Is it a good idea to buy a house in foreclosure? This is a question that most often arises. Especially for people who need of house quickly at a low cost.

The house is a valuable investment for everyone. The house can be used as an asset in the future. For example, used as a rented house or sold later.

The problem is, the value of property increases every year. In fact, this increase in selling points can be done in seconds. For example, after buying it, there may be people who want to buy your house right away at a higher price.

Whatever your reason. The house becomes a valuable investment.

While to anticipate the high cost, people are looking for other alternatives to get it. One of them is by taking over the house from the old buyer. You call it with the term of foreclosed homes for sale.

The question now, is it the best idea to purchase foreclosure house? To answer that, you need to look at the following two ways to take over a house below.

Take Over a house on credit Through a Bank

Actually there are many ways to take over the house from the old debtor. But some ways are considered as not safe. Even, it has a big risk behind.

The risk is not accepted by banks. As a result, you will find the difficulty to retrieve land certificates held by banks.

Don't want to experience this situation, a safer way is to take over the house from the bank directly. Here, the seller and buyer must come to the banking office. Then, both of them submit debtor transfer.

The bank will analyze it first. When approved, the buyer will change its status as a new debtor to replace the old debtor. This takeover requires documents such as deed of sale and purchase agreement.

In this way, the new debtor can make installments in his own name. Then the name in the land certificate will be written with the name of the new debtor. Only the status is still held by banks.

Even so, this method also has weaknesses. The first weakness is that the process takes long time because banks need to analyze it.

In addition, there is a possibility if the banks reject the submission. Then the most annoying, the costs for the transfer of debtors tend to be expensive.

Take Over The House with Notary

A safe way to buy a foreclosed house is to use a notary public. The procedure starts with coming to the notary's office. People involved are the seller and the buyer.

At the office, the notary will make a sale and purchase deed and a letter of transfer of land rights. This letter is supported by making a power of attorney to pay off the remaining payment at the bank.

Here, the seller and buyer will have a copy of the letter made by a notary. All document must be signed together. Then handed over to the bank.

It is important to remember that the power of attorney that is made makes the seller hands off in repayment. Repayment becomes an obligation for new buyers / debtors. But this land certificate is still under the seller's name.

The advantage of using a notary is that the process is fast and easy. The cost is lighter as well.

For the weakness, the certificate is still written in the name of the old debtor. This means that the installment process still uses the seller's name.

In addition, there are things that must be considered. When this sale is unknown to the bank, the seller can pay off the house and take the certificate. Therefore, both of them should notify the bank so that this does not happen.

The key, tell the bank when you want to buy a house that way. From here, you certainly know the description of whether continue or not to buy a foreclosed homes. So, you shouldn't ask again about "Is it a good idea to buy a house in foreclosure, right?"

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