Buying foreclosed homes?
I'm writing an article about buying foreclosed homes. Has anyone had any
experience w/this? Where should people look for foreclosed homes? Are there any
webpages devoted to the subject? Is there anything to watch out for when buying
a foreclosed house?
Can I quote you for my article? What name should I use?
Although it may be next to impossible to determine, I would be curious as to
why the previous owners defaulted. Was it simply financial in that they
could not make the payments, or is there a major defect surrounding the
property where the property owners have some incentive for allowing the
mortgage holder to assume "a major problem." Possible defects could include
such as poor location, structural problems, ongoing litigation with builders,
environmental contamination, etc.,
Also, if a purchaser makes an offer while a house is still occupied, they
should ensure that any final purchase is contingent upon the seller ensuring
the property being in the same condition at closing as when the offer is
made, or have the seller agree to reduce the selling price for any needed
repairs. Tenants/owners have no motivation to maintain property when they are
being evicted due to foreclosure. In fact, it is quite common to have
extensive damage to foreclosed property. Purchasers should take pictures
and/or video tape all areas as documented proof of the condition of the
property at the time of the offer.
As a side note, the purchaser should know if they live in a “mortgage�?state
or a “deed of trust�?state. A mortgage state has a six-month redemption
period, which could stall the sale. However, I would anticipate that the
six-month period would normally be past if the property is listed for sale.