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Should I be concerned about buying a foreclosed home?

Should I be concerned about buying a foreclosed home? Like was it not maintained? Or will the bank come after me?
Asked By Sam | Denver, CO | 444 views | Buying | 1 year ago
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Rising Star
23 Answers
Adrian Tridel

Adrian Edwards

(33)

If you are in the market for a new home, you may be considering buying a foreclosed property. While these homes can often be sold at a discounted price, there are several reasons why you should be concerned about purchasing a foreclosed home. Firstly, foreclosed homes are typically sold as-is. This means that the seller will not be responsible for any repairs or upgrades needed on the property. While this may not be an issue if the home is in good condition, it can be a significant problem if there are major issues that need to be addressed. The cost of these repairs can quickly add up, making what seemed like a good deal into a money pit. Secondly, foreclosed homes are often sold without the benefit of an inspection. This means that you may not be aware of any problems with the property until after you have purchased it. This can be particularly concerning if the home has been vacant for some time, as issues such as mold or pest infestations may not be immediately apparent. Thirdly, purchasing a foreclosed home can be a lengthy and complicated process. Foreclosures can involve multiple parties, including the bank, the previous owner, and any liens or judgments that may be attached to the property. This can result in a lengthy and complicated closing process, which can be frustrating for buyers. Finally, purchasing a foreclosed home can be a risky investment. While it is true that these homes can often be sold at a discount, this does not necessarily mean that they are a good investment. The condition of the home, the location, and the local real estate market can all impact the value of the property, and there is no guarantee that you will be able to recoup your investment if you decide to sell the home in the future. while there are certainly benefits to purchasing a foreclosed home, there are also several reasons why you should be concerned about doing so. Before making a decision, it is important to carefully consider the risks and benefits of buying a foreclosed property, and to seek the advice of a qualified real estate professional.
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Rising Star
15 Answers
Bob Fall

Century 21 Lee-Mac Realty

Great question Sam, This is a bit tricky to answer as we are not talking about a specific house and your specific circumstances. In light of that, I will just speak generally. Normally the foreclosure process takes a significant amount of time. Depending on the season and market, it can take anywhere from 3-8 months for a bank to bring a foreclosed home to market. Banks often employ property management companies to secure and prep the home but by the time they get called to do that, the home has sat vacant for some time. Its important to keep that in mind when looking. A good inspector can point out major concerns and help you determine if its something you can tackle or not. For the last part of your question regarding the bank coming back on you. It would be wise to utilize a title company that can insure the title before you purchase the property. This may cost a little bit but could save you from someone coming back and laying a claim to the property. No two transactions are the exact same, so lean into those local professionals that know your market.

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Novice
4 Answers
Jennifer Martin, Affinity Real Properties Group

Keller Williams North Atlanta

(76)

Just be sure to do your due diligence. If utilities are not on, have them turned on in order to complete your inspections. I would suggest in addition to the general inspection to do a sewer inspection or septic whichever the property is connected to.

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