Is now the time to get a great deal on a foreclosed property? New data reveals that may be the case, as a growing number of foreclosed homes enter the market. Numbers released by RealtyTrack on June 14 show Georgia currently has the nation’s highest rate of property default notices, scheduled auctions or bank repossessions.

With more foreclosures hitting the market, there are sure to be some deals available for homebuyers. However, it’s important to know what you’re doing before purchasing one of these properties.

Here are 11 tips to consider when deciding whether to purchase a foreclosure:

1. Foreclosures take place in Georgia on the first Tuesday of each month.
2. Most REO sellers require that buyers use their contract as opposed to the GAR Purchase and Sales Agreement.
3. Be wary of REO addendums that provide that the title will be conveyed via Quit Claim Deed (QCD).
4. Be aware of deed restrictions included by the seller, such as limitations on the sales price and how quickly you can sell the property.
5. Determine if certificate of occupancy (CO) needs to be obtained.
6. The “due diligence period” is often not the same as the due diligence period in the GAR Purchase and Sale Agreement, which makes the contract an option contract.
7. Some REO contracts, including those for FDIC-owned properties, contain language which states the purchaser will be responsible for all outstanding taxes currently owed by the property.
8. Be aware that the effective date will be the date the seller signs the agreement, which is different from the acknowledgement date when the REO seller has reviewed the agreement and deemed it materially sufficient.
9. Purchasers of a foreclosed property who intend to occupy the foreclosed property as their primary residence must give tenants a 90-day notice to vacate once the property has been attained.
10. Be sure to pay the difference for an enhanced owner’s title and insurance policy (usually $100 to $200).
11. Make sure that water bills and HOA liens are reviewed before closing since there may be liens against the property.

Michael Campbell, is co-founder of Campbell & Brannon, a full-service mortgage banking law firm of Campbell & Brannon, L.L.C. provides the highest quality real estate transaction services in Atlanta, including residential and commercial closings, refinancing, construction loan closings, acquisition and development, foreclosures, bankruptcy, litigation, REO services and evictions.  For more information, visit www.CampbellandBrannon.com