Foreclosures
The Three Types of Foreclosures
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Pre-Foreclosures
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Foreclosure Stage
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Post-Foreclosures
Is Buying Foreclosures a Good Deal?
Home buyers who want a good deal in real estate invariably think first about pursuing foreclosures. Buyers have this picture in their mind of a cute little house, surrounded by a white picket fence that is owned by a widowed mom who fell on hard times, but that scenario is generally far from reality.
The Condition of Foreclosed Homes
Price-conscious home buyers are lured by the low prices advertised for properties in foreclosure. They hope to show up at the auction and be the lowest bidder. However, many of these homes are not available for inspection prior to purchase. Is it smart to buy a home that you cannot inspect? Could be if the price was low enough to compensate you for the amount of work that might be required to bring the condition of the home to market standards.
Before you rush forward to buy a foreclosure, stop to think about some of the drawbacks and repercussions if you can't get in the house to inspect the interior.
Who Is Living at the Property?
- If you are unfamiliar with eviction processes, you should hire a lawyer to handle it for you.
- Be aware that tenants who are sued for eviction sometimes retaliate.
- A better solution might be to pay or bribe the occupants to leave.
Non-Owner Occupied Homes
A seller with a deed of trust containing an "assignment of rents" -- meaning the lender has a right to collect the rent if the owner did not make his payments – wouldn’t pay much care to who he rented to as long as they paid him. This can turn out really bad sometimes.
Condition of Foreclosed Homes
Because these homes are purchased "as is" from the lender there is no guarantee of condition. Sometimes it is possible to inspect these homes prior to making an offer but most times not.
