Is it wrong to buy a foreclosure home what do you think?
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As they say, "someone's loss is someone's gain"... but I know it would feel kinda sad knowing that some poor family got kicked out by the bank. There's more foreclosure properties right now than ever before because of all these messes with the bank.
Good luck with your purchase.
You don't think it should sit empty just because someone got into a financial situation they could not handle, do you?
Of course it is okay. In many cases, you'd not even know the circumstances around the previous owner.
True you're buying a home that somebody couldn't afford to keep up,but make sure you don't end up buying somebody elses headache. Especially concerning location,crime rate, and repairs to roofing,plumbing,wiring,and insulation.
more like to bad for them.
you can get some really great deals when looking at foreclosures.
however -be wary ---check for leins and back taxes on the property...if you purchase you will be responsible for them.
good luck :)
No, it's not wrong to buy what someone else lost. You should be able to get a pretty good deal!
Make sure your purchase contract has on "Out" for inspections... You want a home inspector to come in go over the house with a fine tooth comb. If he/she finds damage or repairs over $XXXX or mold, wood damage, termites or other fun problems, then you have the right to get out of the contract and you get any good faith deposit money returned.
Good luck!
No more so than borrowing a lot of money at agreed upon terms , then not fulfilling those terms. Would you let someone borrow $250,000 and pay you back over 30 years? Furthermore, I'm sure that the person who was foreclosed on would love for you to buy the property and reduce the amount they're liable for.
Of course there's nothing wrong with it. You didn't create the homeowner's circumstances and most likely you'll never see them.
If your conscience is still bothering you, buy a house (at a big discount) from someone who's in PRE-foreclosure. You get the great deal on the house and save their credit to boot.
I felt the same way until recently. Recently, I discovered the wonderful house I have been renting, has gone into foreclosure, and was purchased by the bank at auction. The owners hid the information, and I found out from some Realtor who came by one day that we are being evicted! So if I have the opportunity to buy this house at a below market rate, I will rejoice.
The homeowners, when purchasing the house, voluntarily asked a mortgage company to lend them several hundred thousand dollars to buy the house.
The homeowners said the bank could have the property if they ever went into default on the loan payments, knowing that financial hardships can strike anyone, at any time. They even signed documents stating their understanding of the issues.
For one reason or another, this is exactly what happened. The homeowners did not have enough cash on hand to continue to make the payments, or could not generate enough new income to stay ahead.
The bank enforced the contract and, in order to take the asset in lieu of payments on the loan, initiated foreclosure proceedings, after asking the homeowners to pay the loan and making repeated collection efforts.
State law gives homeowners several months (sometimes more than a year) to come up with the money to pay the loan off in full or reinstate it by paying the defaulted amount.
The homeowners failed to take advantage of that time, and continued to fail in their promise to repay a loan that they voluntarily took out and signed off on their understanding of what would happen if they could not make the payments.
That's not really anything to feel guilty about, since the homeowners voluntarily took out the mortgage, and promised the house if they could not pay the mortgage. The process may have worked exactly as it was planned.
If you can get a good deal on a house, so much the better for you, but the foreclosure process looks pretty straight-forward in its concepts. You may also want to consider learning from others' mistakes, and establish an emergency fund to pay the mortgage in case you face a financial hardship.
Good luck.
ForeclosureFish
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