Many buyers are lured by the staggeringly low prices of distressed properties and some of them end up buying foreclosure houses that turn out to actually cost more than what they originally projected.
The first lesson to learn when buying foreclosure houses is not to rely on projections and speculations. There are enough information on the market to ensure a sound decision if buyers would set aside time for some quality research. First timers may want to consider enlisting the help of experts to safeguard their investment.
Keeping Your Guard Up
Up until the final decision on the foreclosure proceedings are issued, the home is still technically owned by its occupants. The original owners can still enforce their rights as owners of the property. Buyers should be careful to avoid situations where they have gone neck deep in negotiations only to discover that the rightful owners have successfully put up the money to wipe out their debts and reclaim their property. Buyers can opt for bank owned homes as these properties are officially owned by the bank selling them.
Make sure you are able to conduct a full inspection of the property before committing to buy. The cost of repairs weighs heavily on your decision to purchase. Buyers should likewise conduct a title search to check for back taxes and other encumbrances attached to the property, which will all transfer to the new owners of the home.
Survey the neighborhood and see if it has easy access to schools and health care systems, business districts and recreational areas. Also check the kind of transportation offered.
Finally carefully study the contract of sale. When buying foreclosure houses the contract may have clauses that buyers do not totally comprehend. You may hire a lawyer to see if your rights are adequately protected. You should always be on your toes for important investments like this all the time.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.