A foreclosed home, also known as an R.E.O. (Real Estate Owned) property is a home that was repossessed due to the owners inability to pay the mortgage.
Buying a foreclosure can be great. It can save buyers a lot of money as long as they do their homework.
Know What to Expect From a Foreclosure
Once a foreclosed home finally reaches market it may not be in the best of shape. Foreclosures can often take several months or even a year to complete. In that time the home probably will not have been kept up at all. Also, the previous homeowners may have intentionally caused damage to the home. They may damage walls out of anger or simply to get at copper piping and wiring within the walls. In some cases the bank may perform simple home maintenance and repairs but the home may sit for months as the banks decide to sell the home and set pricing.
So What Are The Advantages?
Potential homeowners may be asking,”So what would be the point of buying a broken money-pit?”. Well, they have to remember that the previous paragraph was outlining some, “potential”, worst case scenarios. By performing due diligence and doing a little research, buyers are sure to find perfectly good homes in the foreclosure market. The new home will probably need a little work. But with some effort a homeowner can turn foreclosure into a home and see some appreciation in the properties value.
Is a Foreclosure The Right Choice For Me?
As a potential buyer ask yourself.
- Am I prepared to invest the money and time needed to bring this house back to a habitable condition? Do I know all the problems the house presents?
- If the utilities have been turned off for months, do I know what works in the house?
- Have I been given enough time to get the house professionally inspected so that I have detailed knowledge of how badly off the property may be?
If you decide that a foreclosure is the right choice for you. Be sure to contact Ralph and Robyn to help you negotiate a great deal.