If you are new to the Colorado Springs real estate market, or if you’ve been out of the real estate market for awhile, you may need to become familiar with the concept of buying a Colorado Springs home foreclosure.  Foreclosures are bank-owned properties that are vacant, and are often in need of repair or renovation. Depending on the neighborhood, it is possible these homes will have been vandalized.

While Colorado Springs home foreclosures for sale are often lumped together with short sales under the category of “distressed properties,” there are some major differences between the two.  For one, a foreclosed home is more likely to need a lot of work because it could have been left uninhabited for several months, while a short sale is a property that must be sold at a loss because the owner owes the bank more than the current value of the home.

If you have the funds to make the needed repairs, a foreclosure in Colorado Springs may be a great deal, but it is important for buyers to do their homework first.  Here is some advice for Colorado Springs homebuyers considering a foreclosed property.

Calculate the cost for new carpet, new cabinetry and upgraded appliances, or whatever necessary repairs need to be made.  Have the home inspected and make sure you are not in for any surprises once you move in.

Don’t get caught in a bidding war over a home foreclosure or you may end up paying too much.  Do your research ahead of time and find out what your top price should be for the property, and stick to that price.

Look closely at the foreclosure property listing and be sure everything adds up correctly.  This may require a trip to the Assessor’s office for El Paso County to be certain the home has all the right permits and the square footage is accurately listed.  Also, find out the price of comparable homes in the neighborhood.  It is possible that prices have dropped since the original assessment.

Make sure you already have arranged for financing the home.  You will not be able to make an offer on a Colorado Springs foreclosure without pre-approval from a lender.  Be prepared to move quickly if you want to buy any distressed property in Colorado Springs.

Lastly, look at what is going on in the neighborhood around the home.  If there are already several foreclosures, you will want to stay away from that neighborhood until prices have stabilized.  Check out this older post  "How do foreclosures affect the Colorado Springs real estate market?"