Why You Shouldn’t Buy A Foreclosed Or Short Sale Home
A sheriff’s sale (or auction) comes at the end of the foreclosure process when the defaulting homeowner can’t repair his financial problems with the lender. Remember, there are a lot of people who assume that there is something inherently defective or unsuitable regarding forclosed homes. Check the properties around the house too, you don’t want to purchase a house if every house in the neighborhood is getting foreclosed on, the property value and chances of selling could go down. Now, the reason you can obtain a foreclosed home so cheap is because the banks hate dealing with foreclosures because of the substantial loss they stand to take. The main benefit that you can get in buying foreclosed houses is the low market price.
This is especially true when it comes to cleaning windows from the outside and/or those that are high up (eg, on second or third stories of homes). If you are Looking for cheapest foreclosed homes this place is the best & it’s free!! According to the lawsuit, Harbour’s contracts are predatory and unconscionable” in part because the firm sells homes for up to five times the price it paid for them and holds the title to the residence until the final payment is made — which rarely happens.
It’s fair to assume these homes are in need of severe renovations and overhauls in order for you to live in it or flip it. If you are new to the foreclosed home buying process I would not suggest a sight-unseen auction at all. The proceeds realized fro the sale go to indemnify the overall costs the previous owner of the property was unable to cover.
Harbour sold its homes through an arrangement similar to an installment payment plan, with a high-interest, long-term loan called a contract for deed, or land contract. Prospective buyers of foreclosed homes may be wise to submit bids on several properties at once, because it is possible for competing buyers to secure a property with a higher bid or an all-cash offer. A short sale can be an alternative to foreclosure for a homeowner – especially in instances where the homeowner’s mortgage is higher than the home’s current value.
Despite these challenges, auctions can be a good resource, as long as the excitement of bidding does not lead you to buying a foreclosed home at an inflated price or more than you can comfortably afford. When considering a foreclosure purchase, homebuyers should be prepared to act quickly, but not be in any particular hurry to complete the sale. Banks and mortgage lenders often have these homes for sale on their websites or through local real estate agencies. Given that the bank has not maintained or had first-hand knowledge of the foreclosed home prior to acquisition, there may be no record of property repairs or maintenance that would assess the true property condition.