Winter 2009 USAA Magazine - USAA.com

Foreclosure Buyers BewareStories of shockingly low home prices have attracted new buyers to theforeclosure market recently. But not everyone hits the jackpot. Impulsive oruneducated buyers often find themselves holding the deed to a money pit.Here are some tips to help you come out a winner.ILLUSTRATION BY harry CampbellDODON’TDODON’TDODOYour homework.Search reputableonline databasessuch as RealtyTrac.com for foreclosures.When consideringunfamiliar areas,research neighborhoods,schools andmarket prices.Buy property atauction unless youare comfortablewith substantial risk.Auction propertiesmay be in poor conditionor have liensagainst them thatwill cause you legalheadaches. Buyingbank-held foreclosuresis safer.Drive a hard bargain.Generally, aforeclosed propertyshould be at least 20percent lower thansimilar homes. Ifthere’s a glut of foreclosures,you may beable to negotiate aneven better price.Make an offer beforeinspecting the home.Look for water orinsect damage andstructural problems.Hire a professionalto check electrical,plumbing and HVACsystems. If majorrepairs or upgradesare needed, ask acontractor to estimatecosts.Work with a realestate agent whois experienced inforeclosures and canaccess multiple listingservice data.Get financing beforeyou shop. USAAoffers loan prequalification,which maygive you greaterbargaining power.New Rules FOR Credit CardsMost changes required by the new credit card law take effect in February 2010.To learn more, go to USAA.COM (Search: 7 Ways the New Credit Card Law Affects You).usaa.com WINTER 2009 usaa magazine11