Feb 4 2017 31095 1

Feb 4 2017 31095 1

What’s Different When Buying a Foreclosure

If you’re in the market for a new home, foreclosed properties can be really appealing. It’s easy enough to find a listing in a neighborhood that would otherwise be out of your price range, but don’t be fooled by what looks like a great deal. Buying a foreclosure is something you should seriously evaluate prior to shopping or writing an offer. Check out “The Pros & Cons of Buying a Foreclosure”for more on the specifics.

If you’re up for the inherent risks, you’ll want to know how it differs from a normal real estate transaction, what options you have, and where to look.

In general, when purchasing a foreclosure expect a very impersonal experience. You’re most likely communicating with the lender or bank that owns the property and for them it’s just a business decision. If the numbers make sense they’ll make the deal, and if not then they won’t.

Understand that foreclosure is a process and there are multiple stages during which the homeowner can resolve the delinquency or a potential buyer can make a purchase. At certain stages you can get a better deal while taking on more risk, and in other stages you can absorb less risk but at the sacrifice of a bargain.

As a group, these are considered “distressed properties.” They are distressed because of both the financial situation of the owner and also the physical condition of the property.

It’s critical to understand that distressed properties are often treated poorly by the previous owner; after all, someone was forced to leave their home. Chances are that if the owner wasn’t able to stay current on the bills, they weren’t able to stay current on maintenance or repairs either.

Often the owners will feel that the lender is acting in bad faith and will purposely cause damage to the home prior to their eviction. This damage can range from superficial, to the removal of hardware and appliances, and even the intentional damage of structural elements in the home.

That’s why it’s critical that you understand the risks you are taking and are willing to endure the as-is nature of the purchase and all of the baggage that entails.

Andrea Ackerman Headshot
Phone: 334-717-6689
Dated: February 4th 2017
Views: 372
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