I recently got an email from a client asking about the availability of foreclosed properties. I thought it was a real timely question.
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Here was my response:
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Yes. There are alot of foreclosed properties on the market. However, there are alot of existing and new homes that have significantly come down in price as well.
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My wife and I bought a foreclosed property in Oct. of '06. We bought it to fix up for resale. Long story short, we held it for over a year. Not that it has anything to do with your question, but there are some things you should consider if you want to purchase a foreclosed property.
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1) AS IS - Foreclosed properties are sold "AS IS." Why does this matter? Depending on what type of loan product you choose like FHA for example, they may require that the property meet certain criteria. (You might refer to Carey Ann for details). Also, when you buy foreclosed, you remit any guarantees of the condition of the property. A detailed home inspection and mold test should highlight any hidden conditions,however just be aware that there will be a higher risk involved.
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2) Most home owners who have fallen in foreclosure over the last 2 years, owe just as much on the house as it's worth. In reality, the banks want as much of their money back as possible. So, don't always assume it will be an even better deal than an existing or newhome.
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3) Foreclosed generally require lots of "sweat equity." If you and your husband are not willing to do things yourself, foreclosed property is not for you. If you want to purchase a foreclosed property, just be aware of the previous points. I'll be there to help along the way. Once you know a more specific time you will be moving to Tennessee, we'll be able to better gauge the right properties.
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This website advertises foreclosures, http://www.foreclosurenet.net/
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If you are considering a home purchase, call me. Let me guide you through the weeds.
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Rodney McCarthy
Remax Elite
615-564-0444
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