Posted on: 22 July 2018
A lot of people are attracted to foreclosed homes, simply because the prices are often lower than market value; however, buying a foreclosed home has a large list of risks. If you are considering buying a house that was foreclosed, you should be aware of these risks before you make an offer. Here are some of the main risks to know about.
The house may not have power
When a bank takes a house from a person, the house often loses the power to it. In other words, the electricity gets shut off, and this leaves a home vulnerable to a lot of major problems. If you are looking at a foreclosed property, you should ask about this. If the house never lost power, there will be fewer risks with this house. If it did lose power, you will need to carefully examine the home's plumbing system, HVAC system, and all the other systems. You will also need to carefully inspect the home for signs of pests and rodents, as pests love entering homes that are vacant.
The house may not be complete
A second risk of buying a foreclosed home is that the home might not be complete. This means that the house might be missing some of the normal things a house would come with. This can include the furnace, doors, light fixtures, appliances, and cabinets. People who lose their homes through foreclosure often take things from their homes that they really should not take. Additionally, foreclosed homes are usually vacant for months, and this opens up the risk of vandalism occurring in the homes.
The house may have liens on it
The other risk you have is that you might inherit some liens on the property. When you buy a house like this, you are basically buying the house as-is. This means that you must get a loan to buy the house, and you must pay off any liens that are on the deed of the house. Additionally, you might get stuck paying back taxes on the house, if the property taxes were not paid. You will need to carefully research the title to the house before buying it so that you are aware of what you are getting.
If you want to buy a house and would like to find an affordable one, you might want to look for foreclosures in your area. You can learn more about this by contacting your local real estate agents.Share