Tempted toBuy a Foreclosure? Don’t Make These Mistakes
(RepublicanJourna.org) – Foreclosed homes are often among the most affordable options, but there are several disadvantages to be aware of that may make them not worth your time. Here are three of the most significant red flags to look for when buying a foreclosed home.
Significant Disrepair
No home that has been lived in will come in the same condition as one that is brand new, but most people who choose to move put in a reasonable effort to clean and make repairs before leaving. People who are quickly forced out of their homes and often did not plan to leave at all tend to immediately stop doing any work to maintain or improve the condition of the home, and some may even cause intentional damage to make life more difficult for the bank that will be taking back and attempting to resell the home.
Problems With Liens
Homes that are foreclosed generally have liens linked to them, which can complicate the purchase process. Properties with multiple liens can be especially difficult to buy because they mean that various lenders technically still own the home, or at least portions of it, rather than the individual or family who was living in the home. This means that transferring the home’s title to you to complete the purchase process can be difficult because the original purchase was not completed properly.
Frequently Sold As-Is
In an effort to recover some of the money that was lost from the original sale as quickly as possible, many foreclosed homes are sold as-is. This means that buyers may not have a home inspection completed before making a decision, which is otherwise always recommended. No repairs will be made prior to the sale, including those that may make the home unsafe. Although the deep discounts of foreclosed homes can seem lucrative, the risk is generally too high to be worthwhile.
If you are still interested in considering a foreclosed home, watching for these red flag is a must in order to avoid being taken advantage of. Do your own due diligence before headed to contract negotiations.
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