Foreclosure properties have the potential for big savings for both house hunters and investors looking for a quick project they can flip. While the pros that flip houses may be able to spot the red flags, those looking for a great deal on a home to live in ought to be cautious when personal finances are at stake. There are several potential hazards to a foreclosure home, and any one of them can turn the fantastic deal into a money pit. Since you are rarely privy to all the details of the property, knowing what the pros look for can help ensure you are getting the deal you believe. Remember, the bank or financial institution behind the defaulted loan is not looking to save you money, they only want to recoup the value of the loan. If you are intent on buying a foreclosed home, you need to do your homework and assemble the right people around you to offer a professional opinion on the following potential hazards.
1. Hidden Debt
If the previous homeowner(s) weren’t able to keep their mortgage current, it is reasonable to expect additional property debts. A foreclosure will only absolve private debt, but public debt such as real estate tax can present problems down the road. Doing an investigation into whether or not a property has a clear title will avoid these future issues.
2. Environmental/Health Issues
Often, homes that are in foreclosure have been vacant for some time, and this can present serious health and environmental risks. Squatters are a real possibility as well. Homes that have been left without regular maintenance can have leaky underground tanks and dangerous mold. These problems get magnified over time and can make a house uninhabitable if left for too long. Pest control is also likely to have been ignored while the property was vacant, and your home could now be home to several tenants. Small critters and insects may have made found a nice place to settle while nobody was home and getting them out can be difficult. This is especially true with a termite infestation which can be devastating, and like a serious mold problem, can leave your new home uninhabitable.
3. Costly Maintenance
Other problems, while not detrimental to your health, can certainly be for your wallet. With previous homeowners in likely financial trouble, it is unlikely repairs to the home were being made. Repairs involving an AC unit, water heater, electrical work, or water/sewage could eat into the savings from the purchase price. Other items when left untreated such as clogged gutters, landscaping, and window treatments may seem insignificant at the time of purchase but can add up quickly after the sale. Also, homeowners associations will likely penalize you for not making the repairs in a timely fashion. It is also probable that the previous owners will have gutted the house of major appliances and any upgrades they made to the home before being forced to vacate. On top of the added costs to replace such items, more vengeful previous owners may have caused unnecessary damage to the property out of anger.
While extremely serious, these potential hazards in purchasing a foreclosure should not deter those determined to find a great deal. Many foreclosure properties have only slight or no problems and represent a tremendous value. It is simply to stress the importance of doing your homework on a piece of property. Doing so to the best of your ability, knowing what to look for and when to walk away can be one of the wisest decisions you’ll ever make regarding your finances.
The writer of this article, Brian Levesque, has flipped various homes and writes about the lessons he has learned from these investments online. For the exterior renovation, he highly recommends turning to companies like Aerotech for help. You can learn more about Brian on Google+.
10 Benefits of Guest Blogging for Online Business
If you own an online business, then you need to add guest blogging to your digital marketing mix. Guest blogging...
10 Best Cities You Need To Visit In Texas
You might have heard a lot of people say that “Everything is bigger in Texas“. Well, there is no doubt...
7 Most Attractive Bookshelves to Adorn Your Home Decor
Whether you’re an avid reader or a design enthusiast, there is nothing you would love more than a stylish and...
Let’s not sit Idle and Paint Something New!
We have already listened countless times that “don’t sit idle” and “try to utilize your time productively.” But did we...
Get the Best things for Thai Bride
Thailand is rich with beautiful girls, and the enormous piece of them wouldn’t fret dating outsiders. These are about the...
10 Largest Cities In Texas By Population (2020)
Western countries are way less populated than eastern ones. But the west is also playing a part in increasing the...
The Greatest Night Clubs in Las Vegas for Bottle Service
Las Vegas is loaded with the dance club and picking one can be a significant undertaking for somebody who is...
Why is Investing in Healthcare is the Best Option for Medical Professionals?
Healthcare industry is considered as one of India’s largest sectors, both regarding employment and revenue generation. It is expected to...
The need and use of the Vial Box
There are a lot of healthcare professionals and caregivers that have to assist the living facilities and there are a...
How To Buy an Abstract Rug Online and Avoid the Mistakes Involved
We are currently living in the golden age of nesting. Especially as part of the millennial generation, we gravitate towards...
Begin Your Love Story With Disabled Dating
We want you to know – you aren’t DISABLED, you are just differently-abled because the only disability in life is...
Are You Selling at Least The Basics To A Beach Vacationer
In winter, a lot of people travel to major attractions such as warm beaches. These travelers often have to pack...
What You Need to Know Before Starting a Business
Congratulations, you did it. You decided to quit your day job and start a business. Being your own boss is...
.Net 3.1 Latest Features Released By Microsoft
.Net 3.1 Latest Features Released By Microsoft The latest version of .net core 3.1 has been released by Microsoft that...
BEST SPORTS FOR KIDS TO ENGAGE IN THIS YEAR
We are in a generation where our children are living an inactive lifestyle with very minimal or no sort of...
- Tech5 years ago
Creating An e-Commerce Website
- Tech5 years ago
Design Template Guidelines For Mobile Apps
- Business4 years ago
The Key Types Of Brochure Printing Services
- Travel8 years ago
Who Else Wants Also Nfl Hat
- General5 years ago
Kobe Bryant With His Unique Nba Jerseys
- Tech5 years ago
Climb Google Using These Checklists
- Tech6 years ago
Why Small Businesses Can't Ignore Mobile Technology
- Health6 years ago
Health Supplements For Sports Activities Nutrition