With the amount of houses going into foreclosure, there are a ton of foreclosure listings out there. However, as with anything, all foreclosure listings have pros and cons. Whether you feel the pros outweigh the cons or the other way around, it’s always best to be cautious.
To start out, there are many pros to finding a foreclosed home. For one, the prices are usually between 5% to 10% off of the cost, but there are even some with even higher discounts such as houses selling for 30% to 50% below the market cost. These homes are always priced lower than regular real estate houses and that can be a big advantage.
There are also low closing costs associated with buying one of these homes. Because banks and government agencies own these homes, they want to get rid of them as quickly as possible so they’re more flexible. This can be a big money saver; these institutions will usually accept lower down payments, closing costs, and financing options, among other costs associated with purchasing a home.
In addition to these advantages, there’s the pro of moving in as soon as you wish. You won’t have a delay after you purchase the home because of the previous owners. These houses are vacant so as soon as you seal the deal, you can get right in and start getting comfortable in your new home.
Now to the cons dealing with and buying foreclosed homes. To start, there is the downfall of liens and liabilities. The liens come from unpaid taxes and the liabilities are associated with the title. These fees can increase the amount of paperwork and the cost of buying the home. By doing a little research, you won’t run into time wasters such as these.
Another con is the former homeowners. You may have a problem with them if they’re in denial and refuse to move out. Unfortunately, you’ll have to go through the hassle of evicting them. But once again, with some research you can avoid these troubles.
Lastly, there’s extra paper work and the homes are as is. The paper work is generally not a big deal for such a great price on a home; however, you’ll need to exercise a lot of caution and take the extra time to research everything before you head into the foreclosure market.