Have you ever considered buying a foreclosure? Itâ€™s tempting. We found a gorgeous home in a great neighborhood with a beautiful pool and priced to sell. Priced too good to be true.
You know what they say about too good to be true, right? If it sounds too good to be true, it probably is. Thanks to the non-protocol intervention of our agent, a gentle nudge away from the foreclosure by our parents and some neighborhood investigating on our part, we dodged a bullet.
Foreclosures are not all they are cracked up to be. Sure, you see a lot of home for a lot less money than you would normally pay. But what you donâ€™t realize is that if a house has been foreclosed, there were homeowners who went kicking and screaming out of their home. Possession is 9/10ths of the law and people do not give up their homes easily. Would you?
Here are some things you should know when considering a foreclosed home.
1.Â Â People get pissed when they have to foreclose on their home and they more than likely will damage it. Iâ€™m not joking; I have been in more than one house where walls have been punched in, anything not secured down tightly was removed and one even had been urinated in.
2.Â Â When a home goes in foreclosure, all utilities are turned off.Â That means water, electric and gas. Know what that means? That means if that house has a basement and the power is turned off, the sump pump is not working. That basement has probably flooded between the time it got foreclosed, went to sheriffâ€™s auction and was bought back by the bank. More than likely, this house has mold in the walls and now has permanent water damage.
3.Â Â You buy a foreclosure as is. There is no contingent upon whole house inspection and there is no warranty. You buy the house and you pray to God that it is not a money pit, infested with mold, asbestos or rats and roaches and that you didnâ€™t just buy a lemon.
4. Â It is near impossible to find out any history on the home or the previous owners. For all you know, they were murdered and are now buried in the basement. No one knows and the bank wonâ€™t tell you a damn thing. As-is mentality runs rampant.
5. Â The banks are sitting on stacks of foreclosure and are in no hurry to sell them so donâ€™t expect a quick turnaround to your offer.
6. Â Your offer will most likely be done online through a third party and you will be contacted at a later date whether or not they approve your offer.
7. Â Be prepared to do some independent investigating about the home. Ask the neighbors. You will be amazed at what they will be willing to share with a complete stranger.
If you donâ€™t have a endless supply of money, are not married to a general contractor and do not have an unlimited amount of time, then I would NOT suggest that you purchase a foreclosure, unless you do it the day after it forecloses and the day before all the utilities are turned off.
If none of these criteria apply to you, you should definitely pass on purchasing a foreclosed house. Itâ€™s more than most home buyers are bargaining for or prepared to handle.
Have you ever bought a foreclosed home? What are or would be your greatest concern?
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