Let's start with The Bottom Line
There is a deal to be had in foreclosures, but you should know what you are getting into ahead of time and choose your property carefully. Don't overlook the fundamentals that make a property desirable just because the purchase price is a bargain.
Problems With the Property
The most important thing to understand before jumping into the foreclosure market is that these properties were given up by owners who couldn't afford the payments anymore. In these cases, the house is often poorly maintained - after all, if the owner can't make the payments, he or she is likely falling behind on paying for regular upkeep as well. In addition, some people who are forced into foreclosure are embittered by their situations and take out their frustrations on their home before the bank repossesses. This often involves removing appliances and fixtures, and sometimes even outright vandalism. After the occupants leave, foreclosures sit abandoned, often inviting criminal activity.
•Lack of Cleanliness
Bank-owned properties are sometimes disgustingly dirty because of time spent sitting empty, intentional neglect by the previous owners or occupancy by vagrants. When the place is locked up with no air circulating for months, built-up dirt can cause the entire home to smell.
•Bad Renovations
The previous owners that were foreclosed on may have made changes to the home without getting the proper permits or hiring good labor in order to save money. A common example is finishing basements or updating kitchens. These renovations may create headaches for the new owners with city government officials due to the lack of proper permits.
If the previous owners started the renovation and then fell on hard times, there may be partially finished work in the house. Also, if any repairs were made, they may have been done by the owners themselves or other people who may not necessarily have done the work correctly.
•Lack of Basic Maintenance
If the previous owners couldn't afford their mortgage payments, you can bet that they also could not afford to make even minor repairs. And if they knew they were losing the house, it's most likely they were treating it poorly.
•Personal Property Left Behind
Sometimes foreclosed homeowners get locked out of the property before they can move their belongings, and in some cases they just do not take everything with them. Many real estate owned (REO) properties are emptied by a management company but some contain furniture, trash, clothes and other items that you will be responsible for disposing of when you become the property's owner.
•No Electricity
With no one living in the home, the electricity may be off unless the bank has intentionally kept it on. With no electricity, it can be hard to see what you are buying in some rooms, particularly basements and windowless bathrooms.
•Water Damage
A small leak under the kitchen sink can lead to a mold problem, and a roof leak or burst pipe can lead to major water damage. With no one around to take care of small problems as they occur, small problems can turn into big ones, and big problems can turn into disasters.
•Dead or Overgrown Yard
Depending on the climate where the home is located, the lawn and landscaping may be totally dead or extremely overgrown. Banks usually do not pay for gardeners to maintain the yard.
Unfortunately, there is even more to consider than these items... Please see the links below view Foreclosure Headaches on this blog to continue reading!
Is purchasing a foreclosure a good deal in 2015?
Still interested in buying a foreclosure? Search for foreclosed homes to purchase
So, how about a SHORT SALE?
Is there a perfect house out there?
There is a deal to be had in foreclosures, but you should know what you are getting into ahead of time and choose your property carefully. Don't overlook the fundamentals that make a property desirable just because the purchase price is a bargain.
Here are some problems these properties commonly possess and the difficulties you may encounter in purchasing a foreclosed home.
Problems With the Property
The most important thing to understand before jumping into the foreclosure market is that these properties were given up by owners who couldn't afford the payments anymore. In these cases, the house is often poorly maintained - after all, if the owner can't make the payments, he or she is likely falling behind on paying for regular upkeep as well. In addition, some people who are forced into foreclosure are embittered by their situations and take out their frustrations on their home before the bank repossesses. This often involves removing appliances and fixtures, and sometimes even outright vandalism. After the occupants leave, foreclosures sit abandoned, often inviting criminal activity.
Maintenance and Cleanliness of a Foreclosed Home
Maintenance and cleanliness can be a problem in foreclosure properties because of the circumstances under which the previous owners moved out, and because of the time the house may have sat empty. Some of the main concerns include:•Lack of Cleanliness
Bank-owned properties are sometimes disgustingly dirty because of time spent sitting empty, intentional neglect by the previous owners or occupancy by vagrants. When the place is locked up with no air circulating for months, built-up dirt can cause the entire home to smell.
•Bad Renovations
The previous owners that were foreclosed on may have made changes to the home without getting the proper permits or hiring good labor in order to save money. A common example is finishing basements or updating kitchens. These renovations may create headaches for the new owners with city government officials due to the lack of proper permits.
If the previous owners started the renovation and then fell on hard times, there may be partially finished work in the house. Also, if any repairs were made, they may have been done by the owners themselves or other people who may not necessarily have done the work correctly.
•Lack of Basic Maintenance
If the previous owners couldn't afford their mortgage payments, you can bet that they also could not afford to make even minor repairs. And if they knew they were losing the house, it's most likely they were treating it poorly.
•Personal Property Left Behind
Sometimes foreclosed homeowners get locked out of the property before they can move their belongings, and in some cases they just do not take everything with them. Many real estate owned (REO) properties are emptied by a management company but some contain furniture, trash, clothes and other items that you will be responsible for disposing of when you become the property's owner.
•No Electricity
With no one living in the home, the electricity may be off unless the bank has intentionally kept it on. With no electricity, it can be hard to see what you are buying in some rooms, particularly basements and windowless bathrooms.
•Water Damage
A small leak under the kitchen sink can lead to a mold problem, and a roof leak or burst pipe can lead to major water damage. With no one around to take care of small problems as they occur, small problems can turn into big ones, and big problems can turn into disasters.
•Dead or Overgrown Yard
Depending on the climate where the home is located, the lawn and landscaping may be totally dead or extremely overgrown. Banks usually do not pay for gardeners to maintain the yard.
Unfortunately, there is even more to consider than these items... Please see the links below view Foreclosure Headaches on this blog to continue reading!
Is purchasing a foreclosure a good deal in 2015?
Still interested in buying a foreclosure? Search for foreclosed homes to purchase
So, how about a SHORT SALE?
Is there a perfect house out there?
No comments:
Post a Comment