Is purchasing a forclosed house safe?!?

Question

I don't want to be taken advantage of, I'm only in my twenties and have never owned a house, but figure if a pay 850.00 in rent I might as well get a home. Any advice? Please help!!!

Answer 1

Buying a foreclosed on home isn't much different than buying a regular home.  One big advantage is that you aren't dealing with an emotional seller.  The bank (seller) doesn't have an emotional attachment, they are just trying to minimize their losses.

That being said, some banks can be difficult to negotiate with.  Try not to get too emotionally attached to the house.  The best bet is to wait it out sometimes, if the bank is unwilling to negotiate.

Also, banks tend to not want to make any allowance for repairs, or participate in any kind of "creative financing".  You wtill have the right to a home inspection, and you definitely should get one, as this house may have been vacant for a while!

Good luck with your purchase!

Answer 2

Couple things to look out for...

1)Make sure it has good structure.

2)Check to see if Taxes have been paid if not you are responsible.

3) HOA Liens.. Make sure all HOA are up to date.

4) Make sure Water Bill is up to date

5) Make sure there aren;t a lot of foreclosures in the area

6) make sure your getting it was under vaule.. If not wait and they will drop the price..

Not sure the state you in so some stuff might be different depending on the foreclosure laws. I would make sure you are buying in a good area because if there are a lot of foreclosures in the area then your house is going to drop in value.. Also this is a foreclosure and if you haven't seen the inside be prepared for the worst (mold, Structural Repair, Bad pipes depending on when they moved out)...

Answer 3

it is just fine it means the people before could not afford it

Answer 4

Buying a foreclosure is about the only game in town, because the public does not want to sell at the low price of foreclosures. I am from Colorado and a Real Estate Broker so you need to understand that every State has different laws. Our Real Estate Contractsw have an inspection section that gives you the right to have a professional inspection done. This should protect you from unknown problems. The Title Company insures title and you should be protected there also. A Professional Realtor would be a benifit to you to keep you safe. Write to me if you would like to know more g w oblander at yahoo com.

Answer 5

The only difference between buying a foreclosed home (sold by the bank) and a privately sold property is you will not get any disclosures about the house.  The bank does not have to disclose anything because they were not the occupants, so you may be walking into a house with problems.  On the flip side, you can generally get a better price for a foreclosed house.

Answer 6

CONGRATS!!! The fact that you are taking this mature step into adulthood is awesome!! Now, about the foreclosure...is it in good condition? If it does need some work, is that something you can handle financially? Take a look at all the factors and then make an informed decision. You might try hiring a Realtor to help "guide" you.  Good luck and overall buying a foreclosure can be a GREAT idea!!

Answer 7

it's fine that it's a foreclosure, but whatever you do get an excellent home inspector and pay attention.  When I bought my house, I thought "Oh, it looks good," never even barely looked at the inspector's report (but he was bad and didn't catch a lot of stuff).  Soooo, within the first two years we had to replace the heater, part of the wood floor, there's some major plumbing problems that will need to be fixed in the next couple years, there were small but frustrating electrical problems, etc. etc.

So find someone good and be very involved in the inspection.