Foreclosure home?
Question:
Not, really, most are great deals. Good luck
One of the differences is you are working with a lender who is the seller instead of the actual homeowner. In my case there were more pros then cons but I also looked at my fair share of forclosures in various conditions. I also had a home inspection which I always recommend as well, so you know what you are getting into. The lender doesn't repair or replace any issue that may arise. They don't always know what has gone on in the property. But again, if you ask an agent to show you only foreclosures you will see what I mean.
I got a deal ...I mean steal....My house just appraised at $29,900 more than I paid literally less than 6 months ago.
The "hidden" con will be apparent when you do a walk through. If folks can't afford to make their house payment, they don't have the money for upkeep either. I have been involved in foreclosing on several homes (unfortunately) and you could always tell which house on the block it was before even checking the address.
It comes at a discount because the lender already knows there is deferred maintanence that needs to be taken care of, so they have two options, pay for the repairs or discount the price.
Well it depends when you buy a foreclosure home. You can buy pre-foreclosure, auction, or post-foreclosure. Sometimes you can get a deal but a lot of the houses are upside down, you have to know what you are doing or have help, there is also extra risk. Do not expect ridiculous profits, no money down, like those late night so called infomercial gurus.
Cheaper isn't always best. In some cases those who lose their homes to foreclosure, don't leave it in the best of condition. I've even seen the flooring gone! You really do need to know and understand the whole process of buying a foreclosure. It's a bidding process at sheriff sale, in some state the owner may retain possession for an additional period in order to redeem the property. TV makes it look easy, but they don't show you the down side, like when they have renovated them at more than they anticipated and now they can't sell them. So if I were you, I'd pick another line of work.
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