Everybody wants a bargain, especially in Real Estate. If you are thinking about buying a foreclosure, be sure to accurately assess the overall condition of the property and what will be required to make it suitable for living. Remember that foreclosures are generally sold strictly as-is and, in many cases, have been vacant for several months. If the unit requires upgrades, ensure that you have sufficient funds allocated for and available for repair.
A 10-15 page bank addendum accompanies most foreclosure sales, and often supersedes the language in the actual sales contract. Be sure to read the language and terms included, and make sure you fully understand what you are agreeing to.
Transfer and recordation taxes are generally split 50/50 however, in some cases, the buyer is required to pay all transfer and recordation taxes. This translates into more cash at the closing table.
Contrary to popular belief, you can conduct a home inspection on a foreclosure. It is generally for informational purposes only.
While no one likes to spend the additional funds, this can be a valuable short term benefit for a long term investment.
If you are interested in buying a foreclosure, I’ll see you through.
I’ve represented several buyers in foreclosure purchases and always ensure I’m aware of the fine print.