Drawbacks of Buying a Foreclosure Home
Condition of Foreclosures/Foreclosed Homes
Home buyers are often tempted by the rock bottom prices advertised for foreclosed properties. Often, everyone tries to be an early bird, hoping to catch a glimpse of the house. They would love to be able to place the lowest bid.
The truth is some foreclosure homes are not available for inspection before you buy it. There is a risk here that you may have to take – buying a foreclosure home without inspecting it.
If the price advertised is too low, could it be because there is extensive amount of work needed to restore the house to liveable standards? This could be the reason why it is sold that cheap.
So before you even quickly buy a foreclosure home, consider a couple of factors if you cannot enter the house to inspect.
1. Current Occupants of Foreclosed Property
One question is – who is staying in the house now?
Under prevalent rules governing property and foreclosure sales, the successful bidder is responsible for asking the occupants to leave. These occupants may not be the previous owners but friends or relatives, renters or even squatters.
Eviction may be necessary to get them to leave. You may need to hire to hire a lawyer to take care of the matter for you. If it is straightforward, the occupants would leave quietly. But there are tenants who may retaliate.
Another solution could be to pay them to leave. It could be a cheaper and more effective solution.
2. Condition of Foreclosure Home
These foreclosed properties are bought “as is” from the lender or US Department of Housing and Urban Development (HUD). In other words, there is no assurance and guarantee that they are in good condition. You may be able to inspect the homes before placing a bid.
But the sad truth is, when the sellers who are forced to a corner where their homes would go through foreclosure, they could stop taking good care and maintaining their home. Whatever damage in the house is likely to be kept untouched such as a broken pipe, sink or hanging electrical wires.
There were reported cases of how previous owners got so angry that they actually intentionally damage their homes. Either they flood them or remove the metal piping and anything that can be sold as scrap. Furniture, kitchen ware and electrical appliances that are usable are removed and sold.
To buy a foreclosure home when done correctly would save you lots of money. But still, you must be prepared for these reality checks so that you would not be shocked when you are in the situation. Always engage the help of professional foreclosure agents who can take care of every nitty gritty detail for you. Trust me, at the end of the day, it is worth the money you pay.
Consider using this service when you are planning to buy a foreclosure home.