Consumer Report: Benefits and Pitfalls of Buying a Foreclosed Home, a GoBankingRates.com Examination
Homeownership has never been more affordable, especially when it comes to buying a foreclosed home. www.GoBankingRates.com explicates the pros and cons of buying a home in foreclosure as well as the intricacies of the foreclosure process.
The investigation cites the primary advantage for buying a foreclosed home is that homeowners and banks are highly motivated to sell the property.
“Borrowers who have defaulted on their home loan are not in a position to withhold a sale for a higher price,” explains Jennifer Calonia, Go Banking Rates’ finance expert. “Banks, too, are quick to shed the dead weight of a foreclosed property, in hopes of minimizing their losses.”
Despite the financial benefit of buying a foreclosed home at today’s low mortgage rates, the report reveals reasons why buyers should be wary of foreclosure properties, including:
1. As-is property sales (bank will not perform any needed repairs)
2. Potentially buying properties unseen and without inspection
3. Risk of questionable damage or theft by defaulted owners as retaliation
The report describes the various foreclosure sale types that home buyers should be aware of, such as direct sale by homeowner, short sales, foreclosure auctions and real estate owned sales. As each type of foreclosure sale presents a different set of requirements and restrictions, the report also details which precautions buyers should execute with each type.
View the full report. (http://www.gobankingrates.com/
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