The news is full of stories on how many people are losing their homes right now given the current economic conditions.   It is extremely sad when someone loses their house and we would hope that the government will continue doing all it can to help.

But someone else's misfortune may be the opportunity for you to get your family the home of your dreams.  For me, it is giving me the chance to provide my boys with space to play and to have their friends over.  We wanted to move to a better neighbourhood.   Some guy tried to snatch two young boys from the playground a hundred yards from our home - that just makes my blood run cold.  Thankfully he was stopped and is now in police custody but it made us determined to leave.  

But don't be fooled into thinking that all foreclosure homes are a bargain.  As a lot of investors are finding out they aren't.  Some resemble the house from the film The Money Pit.  

So how can you avoid these duds?  

Do your research on the property that interests you!

• How long has it been empty?
• How does the outside look?  If it looks neglected and tatty, chances are the owners didn't pay too much attention to maintenance.  This can cause expensive bills later on.
• Check out the inside.  NEVER buy a property unless you have had the chance to check it out both internally and externally.  It may look like the dream home from the outside but on the inside the only residents it is fit for are the local pests and termites.  Don't let a lick of paint fool you.

 Do your research on the area:  

• Don't let the bargain price turn your head.  Whilst you can get fantastic deals, you still need to make sure that you have properly researched this purchase.  Do you like the neighborhood?  Have you spent time there in the mornings and evenings.  We all know areas that look lovely by day and turn into hooligan central by night.
  
• What are the local schools like?  Do they have a good reputation?  Could you imagine your kids going there?
• Do the properties around the one you are interested in look well cared for?  There is not much point having the nicest home in the street if the others all look like the house that Jack built when he was under the influence of something.

Get your finances in order:

• If you are a cash buyer that is great news.  But most of us would require finance from a bank or similar organisation. Even if you don't know the actual property you will purchase, you can get pre-approval from your bank subject to the property being suitable.  Being prepared like this shows you are a serious buyer and thus more likely to win a favourable response if there are a couple of interested parties wishing to buy the same foreclosed property.
• Another advantage of having your finances in order before you go looking is the hope that this will prevent you from losing your head and committing yourself to a purchase you cant afford. You dont want to end up in foreclosure too!