Considerations about foreclosed properties to know.
In today’s market, you can find some great deals on foreclosed properties. While some can be great deals, others could end up being a money pit. Before you jump into a foreclosed home, there are some things you should know.
Conduct a title check
Before making an offer, you should run the title to make sure there are no outstanding loans, liens, or taxes. Check for secondary liens and even go so far as checking if there are unpaid HOA due. Always get title insurance in case something was missed.
Get a home inspection
Most foreclosures are sold “as is” but it’s worth taking a look to see what you’re facing. There may be underlying issues that are in need of repair, and lenders don’t often make these repairs before selling foreclosed homes.
Have enough cash for repairs
Most foreclosed homes will need several repairs, both major and minor. Since banks won’t do any repainting or other repairs, it’s worth having enough cash saved so that you can get started on repairs straight away.
Foreclosed homes are a great way to pick up a good deal in the housing market. These homes are usually discounted quite a bit because they need repairs, so make sure you’re ready for the task ahead.
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