Is a Foreclosed Home right for you?

A wave of foreclosures have hit the real estate market!  And believe me, these homes are NOT being left un-cared for.  Every home, from September 15 to April 15 must be "winterized."  This includes draining the dish washers, hot water tanks, shutting the heat system down, etc.  No detail is left to chance, because ultimately- banks want these homes sold!

 

 

So, you're thinking about buying a foreclosed home?  Nothing wrong with that!  In fact, you know your home has been cleaned, inspected, and cared for.  Chances are, your yard will even be mowed!  So now what? 

 

Contact the real estate agent you want to work with and make an offer right?  WRONG!  There are a few cautions I would highly recommend you take, before diving into home ownership on the cheap.

 

• How long has the house been vacant?  Homes that sit for too long, can have serious problems.  You can have sewer gas problems, bugs in the drain pipes, plumbing seals that have dried out, etc.  Be sure to hire a professional inspector, don't just take the banks "word for it."  Know the good and the bad and get an up-to-date inspection!
• Was the home winterized?  Most homes that have been winterized will have signs on the inside and exterior of the home saying who did it and when it was done.  I would highly recommend verifying the winterizing procedure with the company that performed it.  I've heard stories about homes that were not properly winterized, the pipes cracked during a cold spell and water leaked into the walls of the home.  This caused mold to grow, which caused severe problems for the homeowner once they moved in.  Let's just say, these homes come with no warranty, so do your homework!
• Visually inspect the home yourself!  Do not go online, look at a few pictures and buy a home in another state!  You should know the neighborhood, or at least walk around and get a feeling for it.  If you are planning on living in the home, be sure to check out the crime statistics and school district (if you have children), because these things are often overlooked when the price is right.  Get a good feel for the home, do the floors squeak?  Does the home smell badly?  These are things that will not be known unless you physically are there.  Also, I've heard horror stories about "sight-unseen buying" and fraudulent people are marketing homes that don't exist and buyers are left with a parcel of land.  Be careful!  But have fun!

The real estate "crisis" isn't as bad as some people make it out to be, but for those of us in a position to buy a home, this is a great time to do so!  Buying a foreclosed home is a great option if you are smart and cautious and really do your research.