HOUSTON, TEXAS, UNITED STATES, April 10, 2018 /EINPresswire.com/ — A foreclosure occurs when the borrower is not able to pay the mortgage payment and the lender takes back the possession of the house to sell it off and get back his money. The lender sets the house on sale at a discounted price and the one who bids the highest at the auction gets the title transferred to him. Buying a property in Foreclosure can be a golden opportunity as one can make huge profits on the property which is being sold at great discounts. Undoubtedly, it can help investors to realize tremendous savings. But this option may not be fruitful and worth to go for always. There are certain things which can go wrong and cause problems making you end up in a deal which should not have been done.
Read on to know when buying a property in Foreclosure doesn’t make sense and you should think twice before going for that investment.
1. You Get the House ‘As-is’:
You don’t get a chance to inspect the house before you become the legal owner. The condition of the house which is on sale might not be that good. The previous tenants or owner might have taken out their frustration on the house and caused significant damage to the property by removing fixtures, plumbing, vandalizing appliances etc. Also, you get the title along with all the pending dues like unpaid taxes, encumbrances, and other liens. In short, you buy the property in the auction “as-is” and “where-is”. So, beware of the condition of the property and the liens that it brings along before investing in a foreclosed property.
2. Check Who Lives in the House
Just have a check as to who lives in that house to save yourself from the pain of evicting the previous owners, renters, friends, relatives or even squatters. You may end up hiring an attorney and paying huge legal fees to get them out of the house if you are not an experienced evictor.
3. Should Have Sufficient Time At Hand
If you wish to move out of your previous home and move into the foreclosure property which you have bought in a time of mere 1-2 months then better don’t go for a foreclosure property which takes a lot of time to get possession unlike buying a traditional property. It is more complicated and includes waiting periods due to the paperwork involved. To add to the pain, post-sale legal issues might cause additional delays of weeks or even months.
Check for the health of the non-foreclosure market because by the time you pay the pending taxes, do all the repair and maintenance work, and get the house ready for resale, the market might have dropped or you might have overspent to be able to make the desired profits. If you are doing it for the first time, better take help from some experienced foreclosure specialist to save yourself from a headache and the regret which the deal might otherwise bring along.
5. Research for Other Options
It might happen that instead of a foreclosure property you might get a better deal in the market, a ready to move in-house in a good condition at the same cost. Don’t just go by the name foreclosure and think that it will be the best. Search for other options around before getting yourself trapped in any such deal.
6. Property Might Have Been Rejected by the Real Estate Investors
It is possible that the property you are considering has already been dismissed by a real estate investor who might have and if you think you are really smarter and a better decision maker than a real estate investor, you are most welcome to go ahead with the deal.
So, now you understand that of course Foreclosure houses represent an incredible value in today’s market and can help the investors reap huge profits but then it is not for everyone and it doesn’t always make sense to buy a property in Foreclosure. Keep things points in mind, evaluate well and then decide what is best for you!
Avi Meir Zaslavsky
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Source: EIN Presswire