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Q. I'M IN THE MARKET TO BUY A FORECLOSURE HOUSE. WILL I HAVE TROUBLE GETTING A MORTGAGE? A. Buying a foreclosure can save you thousands of dollars. Recent housing data show that more
than a quarter of all real estate purchases involve foreclosed-on properties. SEE ALSO: STATE-BY-STATE INTERACTIVE MAP OF HOME FORECLOSURES. There can be mortgage red tape and hidden fees
when buying a foreclosed home. Ocean/Corbis In fact, the nation's foreclosure crisis was so severe that banks now own more than 872,000 homes, nearly twice as many as when the recession
began in 2007, according to RealtyTrac, a website specializing in foreclosed properties. However, buying a foreclosure is not for everyone. There is more risk and research involved, and
buyers say the process can be stressful. As with any home purchase, it's important to get preapproved by a lender before you settle on a property. This way, you'll know how much
you can borrow based on your income and other financial information. Also, the seller will know that you're serious and intend to go through with the purchase. QUALIFYING FOR A MORTGAGE
With a foreclosure, though, there may be special requirements so that you — and the house — qualify for a mortgage. You may have to prove through an inspection that the home you choose is
in good enough condition to be financed. Some foreclosures sit empty and neglected for months or even years, inviting damage from roof leaks, frozen pipes and vandals. And angry owners
sometimes strip them before being booted out. It's also possible that before you can qualify for a mortgage, you'll be required to set up an escrow account with money that you plan
to use for any repairs. You must also find out if there are liens or back taxes owed on the property. What about outstanding water, sewer or utility bills? The buyer may be responsible for
these. Then there's the issue of the title. Remember the so-called robo-signing fiasco in which lenders, mortgage servicers and law firms cut corners to quickly process foreclosures,
and the subsequent allegations by homeowners and consumer advocates that some were done improperly or erroneously? Attorneys general in California, Illinois and in other states continue to
investigate these practices. NEXT: HOW TO AVOID A LEGAL HASSLE DOWN THE ROAD. >> VERIFYING THE TITLE To avoid a legal hassle down the road, it's best to hire a title company or
lawyer to research the title of the home you're interested in to make sure it's free of liens and back taxes, and that the foreclosure was done properly. It's also good for
lenders and buyers to carry title insurance. These are common precautions for any home purchase — but with a foreclosure they're even more important. In the event that a foreclosure is
deemed invalid after you purchase the home, an extremely rare situation, the title insurer would defend your claim to ownership. YOU MAY ALSO LIKE: AVERAGE HOME LISTING PRICE INTERACTIVE
MAP. >> _Carole Fleck is a senior editor at the AARP Bulletin._