Buying a Foreclosed Home
Foreclosed house as the name suggests is the house that is
closed for an individual or a group of individuals prior to its
being owned by some other person. This situation arises when a
mortgager either does not bother to take his house back or is
unable to release it due to adverse circumstances and so lack of
money. As a result the mortgaging company takes over the charge
of the house and offers to resale it.
The Foreclosed Homes figure in newspaper advertisements and
property news, local magazines and on Internet. Real estate
agents too have plenty of foreclosed homes offers lying with
them. So a talk with these agents can be quite beneficial. A
visit to the courthouse can also inform you about many budding
and mature deals. On the same hand you can also fortunately grab
a wonderful deal by attending the invariably held auctions for
these houses. If the auction options appears risky to you,
ensure a safe purchase of a foreclosed house via a bank or the
United States Department of Housing and Urban Development.
What makes the Foreclosed homes a cut above the rest is their
inexpensiveness. These houses are available at an incredible
fifty percent discount to their market value. In the present
scenario when property prices are touching the sky, the cheap
rates of these foreclosed houses are definitely a boon for the
mediocre class. The down payment for these houses is also
considerably less in comparison to the amount required while
purchasing a normal house. Moreover these houses can be
conveniently financed at affordable EMIs through banks and other
financing institutions. At several times it is possible to get
upto hundred percent of the purchase financed!
But there are always two sides of a coin. So if there are
merits there are demerits too. The condition of the house or its
wear and tear is the foremost concern. Since these houses are
purchased as it is, it is at the onus of the buyer to fix up all
the infrastructure problems. The risk factor is more in case of
purchasing these houses through an auction because most often
more than half of the contenders have not seen the interiors of
the house before. Also the deal once made cannot be reversed at
any cost. After the deal is finalized it becomes mandatory for
the buyer to accept the house even though it is a shack. However
if the buyer is prudent enough to acquire requisite information
about the house prior to quoting a price for it, the purchase
can be extremely beneficial.
The buyer of a foreclosed house should bear in mind that these
houses are not necessarily empty. Till the mortgage company
hands over the house to the buyer, the initial residents are the
owners. It is at the discretion of the buyer to keep the former
owners as tenants or ask them to evacuate the house. Moreover
the furnishing of the house or its renovation is not the
responsibility of those dwelling in there since the beginning.