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A foreclosure is a home that the homeowner defaulted on the mortgage payments and the mortgage company claimed the property as collateral. We have seen some foreclosures in really bad shape as the homeowner did not take care of the property or the homeowner decided to tear up the property before leaving. The mortgage company normally does not like to hold on to these properties very long as it will continue to cost them money in taxes and HOA dues. Therefore, the mortgage company will list the property on the MLS at a very low price due to the condition of the home and to sell quickly. If you are considering purchasing a foreclosed home, get all of your financing squared away first so you can act quickly. We have seen many foreclosed properties get into a bidding situation with multiple offers and often sell higher than asking price. Also, when purchasing a foreclosure home, plan on spending additional money on fixing up the home before moving in. Many foreclosures need several thousands of dollars for carpet and paint due to the lack of maintenance from the previous homeowner.
In summary, you can find a good deal with a foreclosed home if you are prepared to handle the quick purchase and able to spend money on the property to fix the items neglected by the previous homeowner. Please feel free to contact us for additional information.