Thinking of Buying a Foreclosed Home ?

Warning ... Get Professional Advise for all your legal questions !

     There is a lot of talk about "Foreclosure" home buying, especially on TV infomercials and various Internet sites where it is claimed that you too can either save a fortune or make a fortune by buying foreclosure properties.

     Occasionally, there really are foreclosure bargains.  But that is also true of the real estate market in general.   If you do have an interest in foreclosures, your interest should be tempered with a clear understanding that not all foreclosure prices are bargains.  In fact, many are not because of the bidding process that can be involved.   It's a bit like any other auction process.   Sometimes the potential buyers bid the price above what the item is intrinsically worth.  Also, recognize that a low price, by itself, does not indicate a bargain.  The property may require costly repairs or improvements before it can be occupied or resold.

     On the other hand, if you are a "do-it-yourselfer" and you don't mind investing a good deal of your own time, energy and money in what is known as "sweat equity," a foreclosure home, paricularly one that needs some cosmetic work, can be a good deal for you.  But know what you are getting into.

     Foreclosed homes are typically sold "as is" meaning there is no warranty as to its condition, the type of financing available on it, the form of title, and, among many other things, the rights of any lien holders.   Get good legal advice as well as good real estate advice.

     The U.S Department of Housing and Urban Development (HUD) and the Veterans Administration (VA) are two of the largest entities involved in selling foreclosure properties and their websites are good places to start to learn more about buying foreclosure properties.   Their websites is at U.S Department of Housing and Urban Development

     A knowledgeable and experienced Realtor® is an "absolute must" particularly for first-time buyers of foreclosure properties.  You've heard the phrase about Travelers Checks "Don't leave home without 'em."  Well, there should be a similar phrase about buying a foreclosure property "Don't buy a foreclosure home without an experienced Realtor® with expertise and experience in foreclosure properties."