These houses are tempting for scores of first-time homebuyers, second-home seekers and people looking to get an early jump on buying a retirement home while prices and interest rates are low. So given the pitfalls, are they crazy? The answer is no, not always.
It’s important to keep some things in mind. Think hard about the following 3 factors if you find foreclosed homes even remotely enticing.
THE LOAN: Many banks would prefer to sell to an investor who will pay cash. You may need a mortgage and your need for bank approval can delay the sales process. Lenders will usually only give you a loan on homes that are ready to be lived in. Many foreclosed homes need basic repairs such as installing toilets, sinks, and appliances.
THE INSPECTION: You’ll want to make any bid for a home contingent on a thorough inspection from someone familiar with foreclosed properties. Mold may be a concern given that many foreclosed homes have been uninhabited for months. You should arrange to have the power and water turned back on before the inspection if possible to ensure that pipes are sound and electrical is safe.
THE TITLE INSURANCE: This is a must in the event that a former owner somehow wins back rights to the foreclosed home you end up buying, and then tries to kick you out, you will need to make a title insurance claim.
Take your time. Assemble a panel of experts and watch the listings carefully. For better or for worse, foreclosed properties are going to be available for a very, very long time.
Posts
No comments:
Post a Comment