Foreclosure Search

Buying Foreclosures; Pros and cons of buying foreclosures

Pros

  • You may be able to purchase a home at lower than fair market value price. 
  • Foreclosures can be found at all price points from investment properties to luxury.
  • With a little sweat equity a foreclosed home can become the home of your dreams!
  • Those who are willing to take the risk can use the foreclosure status to take advantage of homes in a move-up neighborhood. 
  • Buying a foreclosure can be advantageous. You could very likely end up purchasing with built in equity, depending on what it appraises for  and your below market purchase price. 
  • Property Option Tool to pull in desired properties for additional content

Cons

  • Depending on the price, you could be facing some steep competition with other would be buyers looking for the same deal.  
  • They can sit vacant some times for long periods of time creating maintenance issues for the new owner.
  • It is advisable to carry owner title insurance to cover your investment if there are any title issues in the future. 
  • You could end up paying back taxes on the property. 
  • Some may need costly repairs that you would be responsible for. 
  • If buying at auction, you may be asked to pay in cash the same day of the auction. 
  • Since foreclosures are sold in "as-is" condition banks are not interested in making any repairs on the property prior to transferring to new owner. 
  • While you're dealing with a foreclosure and its owner, the bank, you should expect extra paperwork and slower response times. 

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