Advice For Buying Bank Owned Properties (Foreclosures)

Foreclosures are no longer just contractors specials. Banks do not want to hold onto these homes so many are 'priced to sell'. This kind of value is attracting a fair share of First Time Homebuyers to this market. Venturing into the purchase of a Bank Owned property can be like swimming in the deep end for many as Foreclosures sell "As Is". This means that you are entitled to conduct an inspection but you will not be able to address inspection issues with the Seller. For those looking to purchase their first home this can be cause for concern but with the right approach you can successfully purchase a Foreclosure and save tens of thousands of dollars on the sale price of the home.

One thing to keep in mind when searching for the right Bank Owned property is that many of these homes have been vacant for anywhere from a few months to over a year. During the time the property remained vacant there were probably many maintenance items that were overlooked or deferred. Even while the property was occupied there may have been neglect. Owners not paying their mortgage are likely to not put money into maintaining a house they can't afford & stand to lose.

Once you have accepted that the majority of these properties are distressed properties we can then look at some of the issues that arise; many seasonal in nature. During Winter be sure that unheated foreclosures have been winterized in time to protect plumbing & water systems. During Fall be sure to check clogged gutters & determine if they are causing other problems in the home; like a wet basement, ground erosion or rotting along the exterior trim & facia. Water Damage can lead to harmful mold buildup. When investigating mold consider how to remediate the mold but also don't forget to look for and treat the source of the mold.

You may want to pass on a home that is too big a project

The best advice I can give a buyer looking into purchasing a foreclosure is:

• Have a professional take a thorough assessment of the repairs needed
• Meet with contractors to get estimates on the costs of needed repairs
• Factor in for the unknown; problems that could arise while fixing other problems

Weigh out structural issues versus cosmetic issues in a home

If your cost outweighs the value of the investment take a pass or wait for the price to drop further on the property before heading in. If you've found a great deal on a foreclosure chances are others will think it a great deal as well. Move swiftly because Bank Owned properties priced to sell often draw multiple offers & often times do sell for more than asking.

If you are considering purchasing a Connecticut Foreclosure Contact Me for a FREE List of Bank Owned Properties For Sale in Connecticut. Call me direct at (203) 442-3873 or E-mail petertesta@yahoo.com