Has the "Right of Redemption" expired?

The 1 year Right of Redemption is an Alabama Law that gives the foreclosed homeowner one year from the date of the foreclosure to redeem the property. The previous owner must repay all the fees associated with the foreclosure. This does not happen often, as the expense is quite high, but it is something you should be aware of.

Can suitable financing be obtained?

Oftentimes, Huntsville area foreclosed homes are not in the best of condition. FHA and VA financing require that the homes meet certain minimum requirements before they will loan money on the home. FHA and VA types of financing are common when low or no down payment is desired. If the home does not meet FHA or VA lender requirements, then Conventional Financing or Cash may be the best options for purchasing the foreclosed home.

BE SURE TO GET A HOME INSPECTION.

Although most foreclosed homes are sold "as is," you can still make your contract contingent on a satisfactory home inspection, radon test, lead-based paint testing, or other necessary inspections. The seller may not make any repairs from issues that are discovered. However, you will be able to budget the necessary funds to make repairs to your Madison County or Huntsville area foreclosed home.

Plan a few extra dollars.

Anytime you are rehabbing or fixing up a home, budget 10% to 15% more than you think it will cost. The little things always add up, and one or two surprises may come into play.

Not all foreclosed homes are great deals.

Make sure you engage a professional Realtor to help you purchase your foreclosed home. Just because it is a "foreclosure" or "bank owned" does not mean it is a good deal. Ask your Realtor to provide a current market evaluation on the home. It is also a good idea to pull up the current tax assessment on the home. This information and an estimate of what it will cost to get the home in the condition you want will help determine if it is truly a "good deal."