Featured News 2015 Should I Buy a Foreclosed Home?

Should I Buy a Foreclosed Home?

range. When you are seeking to move to a new place, a foreclosed home at a reasonable price may seem like a dream come true. Importantly, foreclosed homes are significantly different from other real estate and should be carefully considered before making such a significant purchase.

Questions to Consider Before Buying

A home may fall into foreclosure when the homeowner falls into delinquency on their mortgage. The lender will file a lawsuit against the homeowner, in which case the homeowner can repay the missing past and current amounts. If the homeowner is unable to make the payments, the home will be sold in a foreclosure auction. It is at this point that the home may be opened for purchase.

Before jumping to buy a foreclosed home, ask yourself the following questions:

  • Have I owned a home before?
  • Am I prepared for the legal challenges associated with a foreclosed home?
  • Am O seeking to live in this home or make money off of it?
  • Do I have enough money to cover surprise expenses?
  • Is my network of professionals accessible to do work on the home?

The most significant surprise with a foreclosure home is the likelihood that the house and property have fallen into a state of disrepair. If the homeowner was unable to make mortgage payments, they will have likely neglected upkeep and maintenance as well. The money that you may be saving on the initial home purchase may not be all that cheap when all the upgrades, improvements, and maintenance is finished. In addition, homes that have been vacated may be exposed to vandalism and trespassing by squatters, thieves, or even teenagers.

Foreclosure homes also carry additional legal considerations that other real estate purchases don't. Judgments and liens may need to be sold off, and the previous owners of the house may need to be forcibly evicted.

If you are wondering whether you should consider buying a foreclosed home, you should speak with an experienced real estate attorney. Discussing your financial situation and your concerns can help you determine whether or not making this purchase is in your best interests.

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