What are the pros and cons of buying a <span title="foreclosed/short-sale/bank">foreclosed/short-sale/ban...</span> owned house?

Question

My wife and I are looking to buy our first home, and one of the houses we're most interested in happens to be a foreclosure. Before we get into anything too deep, I'd like to learn more about what this means, as a buyer, from someone with more experience. Any help would be very much appreciated! Thanks!

Answer 1

well, as a homeowner a few times over and never having gone bankrupt or in foreclosure so far, if your credit rating is good, get an apraisal on the home, andgo for it~!

credit is tight , prices are low, interest low, go for FIXED rate, and if it is a newer home that they could not keep up with the rising interest you might be getting a great deal right now, but compare prices and make sure of things, dont let these crooked real estate brokers rush  you into a bad deal~!

Answer 2

I&#039;ve bought two HUD foreclosures and haven&#039;t had any major problems. Buyer beware of course. The house may have been left unoccupied for a while and things may have broken, been stolen, vandalized or whatever. People often had to leave these homes on bad terms and they aren&#039;t going to leave freshly painted walls, spotless carpets, and a batch of homemade cookies. You either need to really have a good understanding of what to look for yourself or hire a good inspector. Take nothing for granted. If they say there are no termites get your own bug guy anyway.

And while the price may look good compared with the insane market or a year or two ago it may still drop more. What&#039;s more, we have to take into account the reality of fuel prices. If a house is way out in the boondocks or expensive to heat and cool, what looks like a great deal may just bite you in the butt. Mine are both within 2 miles of my residence and a military base with a secure future. I wouldn&#039;t feel nearly as happy with something in a strictly &quot;bedroom community&quot; far from jobs and stores. I suspect that won&#039;t be so attractive in the near future.