วันพฤหัสบดีที่ 18 มกราคม พ.ศ. 2561

Disadvantages of Buying a Foreclosed Home

It's a beautiful house of your dreams - and it's for sale! But you could never afford it unless it's an REO (real estate owned) house.

The possibility of buying an REO property can be very tempting when you're financially limited. REOs are bank-owned properties, usually foreclosed properties that are being sold at lower-than-market value. These properties are usually considered "distressed" properties that are to be sold as quickly as possible, and as is.

Your dream house at a lower price? Sounds great! However, there are a number of concerns you should be aware of before you consider contacting the agent.

What's behind that door?

Before you float in a would-be buyer's haze through the front door, look at the condition of the yard. If it is a bit unkempt or downright shabby it could be a hint of the challenges waiting inside.

Destruction - More than one hopeful foreclosure buyer has been shocked to find the house has been trashed. It may have been deliberately done by a frustrated former owner, passing vandals, or by vagrants camping out in an empty home. Neglect - Many foreclosed homes suffered from interior and exterior neglect before the owner moved out. Unable to keep up with mortgage payments, routine and even urgent repairs may also have been impossible to pay for, too. Unclean/unsanitary - The former owner may have left the house in very dirty condition. The house may have become a breeding ground for mold, vermin, and destructive insects. Don't be surprised that the interior smells dreadful, especially if it has "hosted" transients. Missing or left behind - If the owner left abruptly, he or she may have left many belongings behind. Or, valuable appliances and even metal fittings may have been removed. Reno nightmares - The former owner may have made changes to the property that are not up to safety and city codes. Those alterations can be a costly nightmare to resolve.

Bank vs owner sale

Dealing with a bank-owned property can be problematic.

Lenders are often reluctant to lend money on a foreclosure if it is considered uninhabitable or appraised below the purchase price. Banks can be appallingly slow in reviewing offers and completing the escrow process. Banks may not be aware of existing property problems. Take no risks: pay for a home inspection. You will probably have ฝากขายอาคารพาณิชย์ competition. Banks are looking for the best offer - especially the cash offer with few or no contingencies and a fast closing.

Be prepared

Buying a foreclosed property doesn't have to be a nightmare. It helps to start out with a preapproved mortgage and work with an agent who specializes in foreclosures.

Crunch the numbers before you place your offer. Will the probable rehabilitation costs plus the cost of the "as is" house still be within your realistic budget?

Finally, become as knowledgeable as possible about buying foreclosed properties before you begin your search. That perfect home might really be perfect after all - and it might even become your perfect home.


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