Zack childress distressed properties in pre-foreclosure stage are quite good in condition and require less repair work.There is huge demand for foreclosed properties that are for sale in public auction.
These homes are suitable for financially sound investors who can bear hidden, unexpected expenses that occur during or after home purchase.In case you are availing mortgage or belonging to low income community, then the investor may land up facing a financial crisis which is not advisable. Look out if any timeline contingency being added in the home sale. There could any unexpected circumstances like previous home owners paying the outstanding loan, lender may disapprove the auction sale and he may occupy the distressed home, and you may had to back out at that point of time. So you should be able to tackle such situations wisely.
Zack Childress review the pros and cons of buying a foreclosed home and how to approach the team of experts.
You avail 15 percent discount on distressed properties as bank sold it “as is” , but you may be spending that amount on your repair work.
Approach foreclosure experts, meet and discuss in detail about the entire foreclosed home-buying process, rules and regulations. Get to know about.
- The hidden cost
- Unexpected and expected expenses that can occur in future
- About the location of the property
- Is it really worth spending on this property?
Approach your financial and tax advisers and check whether you are eligible to buy distressed property.Real estate agents should be hired after screening because many scammers pretend themselves as realtors and sell properties that never exist.
Drawbacks of foreclosed properties
The REO (real estate owned) properties are homes which has lost its structure and in worst condition and can be sold only after renovation. This requires huge amount of money which must be shelled out from buyer’s pocket. These properties are usually unsold for a long time. Due to poor maintenance, there could be mold and cracks. The natural calamities may affect these properties in due course and make it’s even worse like pipes getting broken. These homes are open to robbery and vandalism at any time.
The REO properties have a contingency that the bank is not subjected to bear any repair or renovation during or after the sale. The financial burden is transferred to the purchaser like unpaid debt, unpaid tax, loans or HELOC or anything that is connected to the distressed home. The mortgage lender wait for a stipulated period of time, if it exceeds your loan is disapproved automatically. You may have to wait until complete renovation gets over, till then you may have to live in another place. Previous owners may stay in these homes until they are legally evicted. These are few situations that may take place and you need to face until you move-in.
To know more about distressed properties and the investors who are looking forward to buy a foreclosed home can check the articles written by Zack Childress in REI Quick Cash System.
