Should You Buy a Foreclosed Property and What to Look For?
Should you buy a foreclosed property? Many people will answer, “Why not?” for various reasons:
(1) Lower loan amount and lower interest rates,
(2) There are tons of foreclosed homes to choose from, and
(3) it is a buyers’ market.
However, buying a foreclosed property does not really mean that you’ve got a bargain, although there are select cases when you can say that you are fortunate to find your home through foreclosure. There are things to look for when you decide to buy a foreclosed house. Firstly, you must see the condition of the house you’re eyeing on. Many residents of these homes are naturally not happy being evicted from their places and most of them damage their property before leaving. The cost of repairs and renovations that you need to do on the foreclosed home will add significantly to your expenses in owning the house.
The foreclosure process is a lengthy one; it may take a year or over. So even if the former residents did not do an intentional damage to the house, it is guaranteed that damages will occur. During the process, the property will not be maintained and kept for at least 12 months. The common issues in foreclosed homes include missing plumbing, broken appliances, leaky roofs, cracked foundations among others.
There are as many bargain hunters as there are foreclosed homes in the market, so you should act fast if you want to secure a property.