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Purchasing foreclosure properties is something that anybody can learn about as long as they start in the right place.

Step One – do your homework!

Step one of how to purchase foreclosure properties is simple and just the same as when you buy any home; foreclosed or not, which is finding a property that suits your needs, and watching the market.

There are a couple of things you can do:

1. Hire a real estate agent that specializes in foreclosures. Not only will they be able to help you find the home you want, but they will be an invaluable source of information on the current market conditions.

2. Visit your local book store. Foreclosed homes are big business because many people recognize how profitable it can be. There are numerous books on how to buy foreclosed homes and it may be the best or you ever spend!

3. Watch the market. Just like stocks, some experience is a great asset. Don’t rush in no matter how perfect or how cheap a property may appear. Take your time and watch the market for a few months to get a feel for how things work.

4. Do the work on your own. This may seem difficult but it is actually quite simple. You can search for foreclosure by calling the bank directly, searching for them at the county recorder’s office, or by signing up with an online service.

5. Talk to a banker. Find a banker that specializes in foreclosed homes and make an appointment. Ask questions and pick their brains. Just a like a real estate agent, these people are invaluable resources for their experience and expertise.

6. Find out how foreclosures work in your State. Legal requirements and procedures are very different State to State.

Step 2 – Get Financing

Ok so now you have selected your dream home from the listings. Generally when buying a foreclosed property, you deal directly with the bank. If you found your property through a bank, they will be more than happy to assist you with financing.

Many people have a pre-approved mortgage when searching for a home, foreclosed or otherwise. This simply means that when they find the perfect home, they can move immediately. Most banks or finance companies will pre- approve a mortgage application for 90 days.

Step 3 – Check it out

Just like buying any property, you have to tour the property and check everything. Remember, foreclosed homes have been repossessed by the bank, so it is possible the maintenance has been neglected. The repairs may be manageable, and make it a really good deal. Make sure you know what you are getting into though.

It is also important to check if the home you have selected has any liens on it, such as unpaid property taxes. Find out who is liable for those costs.

Last step – Get ready for the Paper!

Buying a foreclosed home involves a significant amount of paperwork!

About the Author: Alex Diaz has written widely on foreclosure and real estate. Visit his website, Foreclosure Deals for information and foreclosure list