In the age of HGTV, as well as essentially the entire internet, it’s near impossible to miss at least a small amount of hype around foreclosures and REO transactions, and foreclosures for sale in Minnesota are no exception. These properties can suit all kinds of buyers and sellers, whether you’re looking to flip, invest, or even just renovate, which is why foreclosures for sale in Minnesota are a serious option to consider. If you’re unsure whether or not foreclosures for sale in Minnesota are right for you, take a look at some of the questions and info below!
What is a Minnesota foreclosure sale?
When it comes to defining foreclosures for sale in Minnesota, it’s important to note that while the terms ‘foreclosure’ and ‘REO sale’ are often used interchangeably, they are NOT the same type of sale. A foreclosure sale takes place before a bank claims full ownership of the property in question, and these sales take place a dedicated foreclosure auction. At these auctions, a buyer’s minimum bid begins at the sum of the unpaid balance of the mortgage, any additional accrued interest, missed payments, attorney fees and other costs associated with the foreclosure process. If the foreclosure auction does not end with a sale, then the foreclosure becomes an REO property.
Are foreclosures for sale in Minnesota available only to cash buyers?
In order to bid on one of these properties, you must have a cashier’s check in hand for the full sale price of the foreclosure. Unfortunately, this can leave a first-time buyer or those financing the sale at a disadvantage. Depending on the circumstances, this transaction could include additional liens placed against the property, current occupants, unpaid taxes, assessment fees, etc. for which you will be liable. Basically, make sure to do your research ahead of time, ideally with the help of a real estate agent, such as one of our experts here at The Antonov Group. Navigating a foreclosure can be extremely difficult, which is why we recommend this option for either very experienced buyers, or buyers who are represented by an agent with extensive experience with foreclosures for sale in Minnesota.
Are foreclosures accessible investment opportunities?
Foreclosures for sale in Minnesota can be an incredible investment.These properties can often require a full remodel, while others may only need some light cosmetic work to really help the home shine. Even with these costs, the low price of foreclosures allow buyers to immediately gain equity room for remodeling expenses and frequently, capital gain!
What does it mean to assess value vs. price?
In order to come out ahead on the purchase of a Minnesota foreclosure, you need to keep the purchase price and home-remodel cost below the actual market value of the property. Not every foreclosure home is priced fairly, just as not every foreclosure is a ‘good’ deal. We highly recommend working with a seasoned real estate agent that has a wealth of knowledge pertaining to repair costs, proper market analysis and especially, facilitating transactions for bank-owned listings in Minnesota.
Are REO and foreclosure homes for sale in Minnesota sold As-Is?
Yes, and because these properties are sold literally in their exact current state when listed, they will not be accompanied by any sort of seller’s property disclosures. This means that you will assume all potential issues and repairs that your foreclosure might require. Even with the most skilled home inspector, you may not be able to identify all the issues with a potential fixer-upper.
With this information in mind, hopefully we’ve helped you in your decision process when it comes to buying a foreclosure for sale in Minnesota. For more information or consultation, please contact our experts here at The Antonov Group.
