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In this article, we will go over what you need to know and do before buying these properties so that you can get started quickly.
Types of Abandoned Properties
Before buying abandoned property, you need to know what type of abandoned property you are looking for.
There are three types of abandoned properties: residential, commercial, and industrial.
Each type has its own set of rules and regulations that must be followed when buying.
Residential Abandoned Property
When buying a residential abandoned property, there are certain things you should keep in mind.
The state laws regarding abandoned properties will vary from state to state. Make sure to do your research on the specific state law that applies to the property you are interested in purchasing.
Also, most states have a redemption period in which the former owner can reclaim the property if they meet certain requirements (e.g., they have not abandoned the property intentionally, they are up-to-date on their mortgage payments, etc.).
Furthermore, abandoned residential properties usually need to be rehabilitated before they can be used. This means that you will most likely have to spend money fixing it up before you can live in it or rent it out.
Commercial Abandoned Property
When buying a commercial abandoned property, there are also certain things you should remember.
Make sure to research the zoning laws for the area in which the abandoned property is located. There may be restrictions on what type of business can operate at that location.
As with residential abandoned properties, there is also usually a redemption period in which the former owner can reclaim the property.
Abandoned commercial properties usually do not need to be rehabilitated before they can be used. However, you will still need to make sure that it is up to code and meets all of the local regulations.
Industrial Abandoned Property
Many states have specific environmental regulations that must be followed when buying abandoned industrial properties. So, make sure to research these regulations and understand them before making an offer on an abandoned industrial property.
Like other abandoned properties, you will still want to make sure that it meets all of the local regulations.
Abandoned Property Sub-Classes
Aside from the main types mentioned above, abandoned properties are also classified into three categories.
Off-Market Property
Off-market abandoned properties are those which are not being actively marketed for sale. This can be for a variety of reasons, such as the property is in too bad of condition to be sold or the former owner is still occupying it and has not yet been served with an eviction notice.
Because off-market abandoned properties are not being actively marketed, they can be difficult to find. However, if you do find one that meets your needs, there is a good chance that you can get a great deal on it.
Bank-Owned Property
Bank-owned abandoned properties are those that have been foreclosed on by the bank. These properties are usually easier to find than off-market abandoned properties, and the bank will usually be more willing to negotiate on the price.
However, bank-owned abandoned properties are also usually in worse condition than off-market abandoned properties, and the bank may have already started the process of rehabilitating them.
Distressed Property
Distressed abandoned properties are those that are in the process of being auctioned off by the state or federal government. Mostly coming as old buildings for sale, these properties are usually the easiest to buy, as they have already been through the legal process of being abandoned.
However, distressed abandoned properties are also usually in the worst condition of all abandoned properties and may require extensive rehab work before they can be used.
Now that you know a little bit more about buying abandoned property, it’s time to start your search.
Important Considerations When Buying an Abandoned Property
Once you know what type of abandoned property for sale that you are interested in buying (residential, commercial, or industrial), there are things you should keep in mind when making your offer.
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Make sure there is no mortgage on the abandoned property.
If the abandoned property has a mortgage on it, then whoever holds the mortgage could potentially reclaim possession after seven years if the owner failed to pay the mortgage.
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Check the property records for any other liens against it.
During your “abandoned buildings for sale near me” search, you will notice that there will be liens on the abandoned property that could potentially give someone else ownership of it after seven years, such as unpaid taxes or back rent owed to a former owner-occupant. Make sure you are comfortable with any potential liabilities before making an offer.
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Find out if there are local regulations that could impede your use of the property.
An abandoned property might have historical preservation restrictions against altering its exterior appearance, or it might require certain modifications in order to bring it up to code and make it safe for human habitation again (such as installing fire sprinklers). Ask your real estate agent about any abandoned property zoning requirements and abandoned property building codes before making an offer.
You can find abandoned properties for sale on the internet, in the newspaper classified section, or by calling a real estate agent specializing in abandoned properties. You should make sure you talk to more than one real estate agent (at least three), as they may have differing opinions about what type of abandoned property is best-suited for your needs.
Finally, many banks are willing to negotiate deals with buyers who are interested in buying bank-owned abandoned properties because, otherwise, it would require them some extra work selling off their problem assets at public auction. This could be very good news if you’re looking into purchasing a distressed or bank-owned abandoned property!
To start on the right foot, you can check on an abandoned property for sale at PropertyEscape.net.
Abandoned Property Laws by State
As mentioned earlier, the laws regarding abandoned property vary from state to state. To get a better understanding of how abandoned property laws work in your state, we suggest contacting your local municipality or searching “abandoned property law [state]” online. Some good resources include:
The National Conference of State Legislatures (NCSL): This website provides up-to-date information on abandoned property laws for all 50 states.
Your Local Municipality’s Website: This should be able to provide you with abandoned property laws specific to your state and city.
Conclusion
We hope this article has been helpful in guiding you to buy an abandoned property for sale in the US. If you have any questions that weren’t answered by the above, please feel free to leave a comment below. And, for more information about real estate, browse our site!
