When you are looking at homes, you might feel overwhelmed and discouraged at the prices or how much home you can actually afford. Looking at foreclosed homes can often feel like you’ve been given a sneak peak on homes that are listed for a steal of a deal, but you need to be cautious when buying foreclosed homes. Here are a few things that you need to keep in mind if you are contemplating foreclosed homes.
- Foreclosed home can take a long time from purchase to move-in. Foreclosed homes are often (but not always) owned by the bank. Foreclosed homes are usually ones that were repossessed by banks after a time of non-payment, so they are looking to recoup the costs of the loan. Foreclosures can sit on a bank’s records for a while, so don’t expect a speedy answer like you would with traditional real estate.
- There will likely be repair costs. Foreclosed homes often have occupants for a few months before they are evicted. Furthermore, a bank is trying to recover costs, so they likely will not be interested in investing more money in maintenance and repairs. You can run into anything from homes that haven’t been winterized properly to mold, so request an inspection.
- You can still require an inspection! Just because a home looks like a good deal, doesn’t mean it is once you consider repairs that are required. You can request an inspection and determine if the numbers add up.
- Be sure to read the fine print. Foreclosures can have some interesting legal terms. Be sure to get a real estate attorney or professional to read all the fine print before signing off on your home.
If you have questions about foreclosed homes, be sure to contact a real estate attorney or professional today.