Wednesday 20 Sep 2017

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Foreclosed & Government Homes
Should you consider a foreclosed home-

This all depends on your personal comfort level. The biggest benefit to buying a foreclosed home is that you can save a lot of money then on a comparable non-foreclosed property. The trade off is that these homes usually need some elbow grease and the negotiations with the bank can be difficult. If that doesn't bother you then absolutely, or at least consider it with your other options. Keep in mind that not all foreclosures are good deals and, at the same token, there are some great move-in-ready extremely underpriced homes available from time to time.
 
Having a good agent is imperative if you’re considering any foreclosed home because the condition of the property can be dramatically different from one property to another, there could be adverse actions pending against the property, the property is sold "as-is", the bank offers no disclosures, you need someone on your side who knows the proper way to work with the bank, and determining the appropriate value along with the offering price is imperative to prevent you from spending to much or allowing a couple thousand stand in the way of the perfect home because of uncertainty. If you get it right you could have an amazing home at an unbelievable price.
 
Why are foreclosures so much less-
 
I get this question all the time. First it is important to understand that not all foreclosures are cheaper or that you will save money compared to a non-foreclosed home. The truth is that the bank, Asset Company, and even sometimes the listing agent wants to sell the home for as much as they foreseeable can. There is definitely more inherent risk with a foreclosed home, you can get burned pretty badly or make away like a bandit, so having a good agent is imperative. 

With all of that being said most homes are typically cheaper simply because of the condition. Even when they seem to be in good condition they are still sold in "as-is" condition with no disclosures and there is an obvious increased risk for the buyer. When the bank has foreclosed on a home they have no intentions of holding on to the property. They want to sell it quick and get it off of there books so they can free up money to lend to qualified buyers. This also lowers their overall risk because when a bank has a vacant property they open themselves to vandals possibly taking any value out of the property, it lowers the property values in the area which not only could affect the resale but also entice other customers to stop paying, they don't have the personnel in place to manage the properties, and they have additional expenses on the properties they hold such as taxes and utilities that they can't recoup. With all this stacked against them it makes sense to sell to the first ready, willing, and able buyer that offers a reasonable price.
 
Government foreclosures-
 
Government homes are usually the best choice of foreclosures because in most cases they do an appraisal on the current condition and list the property for that price, they have the property inspected and will usually provide this information to you allowing a better decision to be made, provide you with more protection in various aspects of the transaction, provide programs that make purchasing these properties financially less stressful, in most cases give priority buying to owner occupant and first time buyers, and are more understanding to legitimate reasons that prevent the transaction from being followed through.
 
 

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