The seller is just shy of foreclosure. What are the pros and cons for the potential buyer?
Question:
Answer:
Pros - opportunity to buy at lower price.
Cons - settlement issues due to liens, unpaid taxes and other crap.
what cons? the pro is that the seller is desperate. if you can find out how much is owed to the bank seller will likely be willing to accept any offer that will cover the current mortgage.
do u honestly think someone who lost their home because of finacial problems, or something gone wrong is gonna walk away from their property? watch your back if u buy this property...because someone who "lost their home" wont walk away as easily as you might think. rocks thrown in the middle of the night...cut tires...watch your back ..
dont buy it
Pros: Motivated seller; opportunity to help someone out of a difficult situation and truly create a win-win scenario; opportunity to negotiate a short-sale with the bank
Cons: Some states (Maryland as of last year) have foreclosure laws that make it difficult for a buyer to work with a seller in foreclosure b/c, among other reasons, the seller can ask for over 80% of your profits up to 18 months after the transaction has completed. Also, you will likely have to deal with higher amts owed due to bank interest, legal fees, taxes, etc. Possibility that the property is not insured due to unpaid insurance premiums (although the bank will often pay these to protect their interest)
Having a property foreclosed on you is not a pleasant experience for anyone to go through. Unfortunately, we live in the "real world" and foreclosures happen daily. Sometimes, it can be the unfortunate result of someone's changed circumstances and other times it could just be put down to bad personal financial management. Unfortunately, sometimes the transaction can turn ugly and become very personal. That can be one of the biggest risks.
Regardless of the reasons behind the foreclosure proceedings, finding foreclosure properties to buy can also be a profitable and common way to make a fortune in real estate. Like it or not, finding foreclosures is a way to profit from someone's misfortune and it is happening a lot.
There are several helpful articles worth reading at http://www.your-real-estate-resources.co...
Good luck and take care!
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