How To Buy Abandoned Property

Property that is abandoned is property that is vacant.

It means there is no owner in possession of the property and this has grown quite common thanks to sub-prime mortgage bubble that burst in the Great Recession of 2008.

Banks might even take over a property where they hold a deed, but may leave them as abandoned.

If you're in a good financial position, then an abandoned property could be a good way to pick up a piece of property on the cheap.

Here's what you're going to need to do.

1. Make sure you can make a legitimate offer

Even though the property is abandoned, it still has a certain value to it.

Unless you've got the cash to cover the purchasing price, you'll need to qualify for a mortgage to make an offer on it.

Check with a local bank or credit union first because you'll likely get a better deal than with a national lender.

#2. Find the right piece of property

You probably already have a piece of property in mind if you're looking at this, but it is important to find the right property to purchase.

Don't look in the classifieds for listings.

Look in the public records for foreclosures or government websites for HUD properties that qualify for renovation.

Deed records for a property can confirm that it has been abandoned or if there are any liens or taxes that may be on the deed.

3. Talk to the owner

If a foreclosure hasn't made its way through the court system, then the property owner still has rights to sell.

Not every owner realizes this, especially if the property has been abandoned for some time.

Call them up and make them offer – you might get an amazing deal! If it has already foreclosed, then speak with the lender.

4. Get an appraisal

Whenever a property is abandoned, it becomes at-risk for problems that can create costly repairs.

Vandals can get in and steal wiring and copper.

Plumbing can burst.

You'll need a complete picture of what repairs will be needed so that you can get an accurate estimate of the home's value.

Not only will this help you decide what a fair offer should be for the property, but you'll also know what kind of renovation expense you'll be facing.

5. Now make your offer

You may have a number of additional expenses that come with the closing of a purchase that involves abandoned property.

There may be closing costs and fees that need to be paid and you may have specific moving expenses if you're planning on making this your primary home. Bid lower than what the appraised value of the home happens to be so that you won't lose your shirt on the overall costs of the home.

Then you can schedule a closing date if your offer is accepted and plan on repairing the property.

Even if the offer you make isn't accepted, that doesn't mean you won't get the abandoned property you want.

You may receive a counter-offer to consider that you can then counter with a new offer of your own.

Some lenders may not approve a short sale, even if the property has been abandoned, because of the debt responsibilities of the owner and choose to enter foreclosure instead.

If you keep plugging away, however, you'll be able to get a great property at an amazing price.

Posted on Sep 26, 2014


Most Important Landlord Tenant Laws in Texas

When it comes to having a tenant for the first time, it can be pretty daunting because you are going to be the corresponding landlord and a new relationship will emerge, which will need time to grow... More

The Landlord Tenant Laws in California

The landlord and tenant laws in California are literally the same as they are in any other state. These laws, rules and regulations are put into practice because they uphold an order, a discipline,... More

Understanding the Landlord Tenant Laws in Illinois

People are aware that there are different rulings in each state with reference to the landlord/tenant laws. The state of Illinois also has a set of laws. These rules and regulations are basically... More

The Landlord Tenant Act: What Landlords Need to Know

All landlords know that before they can formally become a landlord there are a lot of things they need to understand. Landlords and tenants cannot act as such without any legal bodies involved. That... More

Essential Tenancy Agreements that a Landlord Should Have

When entering into an agreement with a potential tenant, a landlord needs to fully understand the contract that binds them into the specific relationship of being a landlord and a tenant. Now that the... More

Landlord Rights

If you’re currently considering the option of offering one of your properties for rental purposes, you should first educate yourself about the landlord tenant relationship. For the first timers, it’s... More

Holdover Tenancy: What is a Holdover Tenant?

Landlords have many things to think of; they have to deal with legal issues, privacy issues, and so much more. Above all, they sometimes need to deal with a problem tenant. The interesting thing is... More

What is a Tenant Estoppel Certificate?

Most landlords may have some idea what an Estoppel Certificate is. However, many aspiring landlords are still unaware of what this certificate is all about. Basically, a tenant Estoppel Certificate is... More

How to Issue a Tenant Warning Notice

Landlords have a lot of administrative work to do when they have tenants. It seems easy to let people come and live in your home, have them pay the monthly rent and carry out your daily activities.... More

Tenancy Sufferance and Tenancy Lease Agreements Myths and Facts

There are a whole bunch of myths about lease agreements that most people believe that are simply not true: You can't rent a property without lease agreement – Actually there are laws in every state... More