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Friday, December 06, 2013

Should You Buy a Foreclosure - Risk, Reward, Uncertainty

Should You Buy a Foreclosure - Risk, Reward, Uncertainty

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Foreclosed homes are not like your usual move in ready home

First of all, most foreclosures are suffering from deferred maintenance.  In many cases the owners were having financial problems before the foreclosure so it is doubtful they had problems "fixed."

Many times foreclosed properties have been vacant for a long time.  This opens the door for vandalism.

Further, there are some owners who have stripped as much as possible from the home before leaving  (removed appliances including the air conditioner, etc.).

In some cases the may be additional damage from a leaking roof or other plumbing issues. 

Finally, the electricity is usually off as well as the water.

At some point, if an inspection is going to be done (highly recommended even on a cash purchase), the prospective buyer will probably have to spend money to get the utilities turned on.  In some cases the selling institution will not allow water to be turned on for any reason.

Foreclosures present a lot of risk with potential rewards. and uncertainty...not for all!

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