Although you’re likely to get a foreclosed property from the bank with a discount or even below the market price, you are buying the home in an as-is condition. This means the bank will not fix any repairs or structural damage to the home. Here are some tips to consider when buying a foreclosed home.
Determine how Long the Property has been Vacant
When a property has been foreclosed upon, the previous owner may have abandoned it and left a considerable amount of damage. Additionally, a home is likely to be vandalized when it is left vacant for a period of time.
Perform a Property Lien Search
When you purchase a home as-is, you should determine whether there are liens attached to the property, like judgments, property taxes or mechanic’s liens. Consider buying a home that is free and clear of all liens so you won’t be burdened with unexpected debt.
Hire a Home Inspector
A home may have a good outer appearance at first glance, but you may not be aware of the hidden dangers that exist. You will benefit from hiring a home inspector who is skilled at finding defects you may have overlooked. If you believe the costs to repair any damages will exceed the financial benefit you’re getting from purchasing a foreclosed home, you may consider looking for other properties.
Hire an Exclusive Buyer’s Agent
Real estate professionals strongly recommend that new home buyers work with an exclusive buyer’s agent when searching for homes for sale. They can help you locate the right property for your budget and avoid potential pitfalls. Your exclusive buyer’s agent will help you navigate through the purchasing process and protect your financial interests.
Getting a Home Inspection. NOLO.
Why You Should, or Shouldn’t, Buy a Foreclosure. Trulia.