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5 Things to Know About Foreclosures

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5 Things to know about foreclosures

  1. You can rely on uncertainty. If there is one thing you can count on in buying a foreclosure it will be the uncertainty of what is happening in your buying process. Most buyers would like the peace of mind of knowing where they stand with the seller. When you’re buying a foreclosure you’ll be dealing with a bank that is entertaining multiple bids and you could be in the dark for months not knowing if your bid was accepted.
  2. Hidden Damages. You might think you were the lucky winner when your bid is accepted but the truth is you won’t know if there is hidden damage to your home until you have moved in and something goes horribly wrong. Get ready to pour money into the home that most likely will be stripped of appliances, plumbing and other fixtures.
  3. As-Is. As-Is never sounds appealing when buying anything and it should never even be an option when purchasing your home. Foreclosed or repossessed homes do not come with a warranty. You will be coming out of pocket to purchase a home warranty that will most likely not cover anything that will go wrong with the home.
  4. Helpful Programs. If you are considering purchasing a foreclosed home be prepared to not get any financial help. There are no assistant programs to help buyers purchasing foreclosures. You will not have the benefit of any builders sponsored loan programs or down payment incentives.
  5. Used vs. New. You might think you are saving money when purchasing a used home but the truth is it will cost you more than just your money. You will not only be investing in something that someone else has already used and abused but you will also be investing your precious time on repairs and remodeling. At the end of the day a used home is a used home. Who knows what the housekeeping habits of the previous owners were like? The time spent on ripping out used carpeting and padding isn’t worth the peace mind of buying new.

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