Getting the Cash for Los Angeles Foreclosed Properties

By: Joseph Smith

While the decision to purchase Los Angeles foreclosed properties might be a smart investment, be ready to take action before you start reviewing the listings or attending the auctions.

If you’re serious about investing in Los Angeles foreclosed properties, you’ll need to make sure you have the funds available to make the purchase, especially if you plan to buy from an auction. One of the rules of these auctions is usually that the entire purchase price must be paid on the same day as the auction occurs. Although you may be able to get a good deal of the property, chances are you won’t have that kind of cash just lying around.

Instead, you should have enough cash available to put down a deposit on the property if you are the winning bidder. The deposit should be about 10 to 20% of what you want to spend. Make sure you have already been pre-approved for financing (if that’s the route you’re taking for the purchase) so you can complete the paperwork and get the funds by the end of the day.

Being pre-approved is also a good idea if you are going to wait for the Los Angeles foreclosed properties to become REO (meaning they are owned by the bank). You’ll be able to negotiate a better deal with them if you already have the funds ready to spend. Banks will also sometimes cut you deals on fees and other expenses so you end up saving even more and going through less of a hassle in order to obtain the house you want.

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Joseph Smith has been educating buyers on the finer points of Los Angeles Foreclosed Properties purchase at for over nine years. Click here to visit and read more advice on finding Foreclosed Properties.

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