How Foreclosures can be Dangerous to Buy

| Author: | Posted in Real Estate

1. Undiscovered damage – It would appear that houses that are foreclosed on, contain considerable damage. If the damage is merely cosmetic, then you do not have anything to be concerned about. But what takes place if the neglected maintenance has created greater concealed problems. How do you fully understand if there are structural or electrical troubles?

Fix this matter with a whole home inspection. It will be the best four hundred (or so) dollars you can spend. It will highlight the buried problems you can’t see on a cursory glance.

2. Problems obtaining financing – If a house has significant damage or is not habitable, you are likely to have difficulties locating a lender that is willing to lend on the residence. It will must be in a livable condition prior to lending. If your deal falls through from the financing end of it, you could lose the money that was needed to purchase the initial inspections.

This won’t be a problem if you locate a competent loan officer that knows about rehabilitation mortgage like the Fannie Mae Homepath or the 203K program. Please do not count on the owner paying for any repairs though. You need to expect to transaction with this without any help.

3. The house is sold as is – This means that any problems are yours and not the sellers. The lenders, since they didn’t own the residence, aren’t required to disclose problems. They simply do not comprehend what they are. So anticipate to deal with any issues with no recourse to the seller.

I will point out it again. A residence inspection is the best way to protect yourself from an as-is sale. You will at least fully understand the issues before you buy it. Omitting the inspection in order to save a few hundred dollars will probably be mistake.

Now that I have likely disheartened you from acquiring a foreclosure, think again. There are excellent deals out there, you just need to look out for yourself. Understanding the problems beforehand can help you save you thousands of dollars making the difference between getting a bad transaction or a great deal.

When searching for foreclosures in Grants Pass, be sure to look into other real estate as well. You can search all of the available homes on the MLS for all properties for sale in Grants Pass completely free. When you are ready, make contact with a Realtor to let you into the property, and in case you’d like to purchase it, help you make an offer.

Related Links

Author:

This author has published 6 articles so far. More info about the author is coming soon.

Leave a Reply

Before you post, please prove you are sentient.

What is 9 times 5?