What to Know About Purchasing a Foreclosure

Buying a Bank-Owned Home

If you are buying a house for the first time at some point you have probably considered buying a foreclosed home. Lots of buyers hear "foreclosure" and think they will be getting a steal of a deal. While it is possible you may get a slight discount to the market on some of these properties that is not always the case. Buyers need to be keenly aware of what they are getting themselves into.

Quite often the previous owner has neglected the property. They may not have kept up with normal routine maintenance that they should have. While most banks sell their properties "as is", it is vital to get a professional home inspection. That doesn't mean your friends dad, Jim who dabbles in home improvement. It should be via a professional home inspection company that has solid reviews.

Buyers should also understand that there are different types of foreclosure properties and how they are handled. For example, a pre-foreclosure is much different than a bank owned property. Additionally, a home that is going to auction is significantly different than one that has already been foreclosed.

In the resource above at Maximum Real Estate Exposure, you will see a comprehensive review of the various types of foreclosure statuses. As a buyer, it is critical for you to understand them. You can get yourself in a lot of hot water by not understanding the legal ramifications.

For example, did you know that when you buy a home at auction, it is purchased with all the warts including any title problems? Most people will be shocked when they do something so financially stupid. Make sure you do your due diligence whenever buying a foreclosure home.