Lexington KY Foreclosed Homes - Buying A Foreclosed Home? The Home's Recent History May Kill Your Family!

They certainly require open eyes before jumping.  There are some great deals, but there are some dogs, too. 

Lizette... what a great post. There can be so many unknown facts about a foreclosed home.

Lizette,

Great post.  Sometimes we see these homes sell for 50 cents on the dollar and often wonder what they are not telling.

Thanks for sharing.  All buyers should beware.

Good post Lizette,

Many stumbling blocks in a house with no disclosed history. Here, we have to give full disclosure on grow ops etc. (if known).

While it wouldn't help a couple of the things you've pointed out, I think every redecorater(flipper) should sell each home(and it's  unknown) with a Home Warranty !!!

In our area we can do an archive search on properties. Sometimes you can find the last disclosure and get some history that way.  You can also ask the local police department if it has been a meth house...I think.

Great information. A lot of people look at the upfront money they could potential save by buying a foreclosure, but they don't realize that there could be significant costs down the road. We almost bought a foreclosure for our first home and even though it was as is, we got an inspection. It would have killed us financially if we had bought the "great deal".

Lizette, I have always told my buyers that a foreclosure is not always a "deal"  afterall the bank knows what the property is worth and they are not going to give it away, if they want to unload it they only have to drop the price just below market, not WAY below!  and if it is way below there is a reason for it! 

Much the same as in my business, if some one quotes a rate that is WAY lower than market, there is a reason for it!  much the same as our Mom's would tell us: "If it sounds to good to be true, it probably is!"

I wish every bargain hunter coming from the fee charged websites and infomercials could read this. I will do my best to share this good info in my market. A $40k savings is no good after $60k in repairs, not to mention the health issues you raised. Thank you for a timely post.

PS. How's this Ambassadorship goin' for ya? I have had an interesting week with my peers. All good!

Lizette, you make some great points.  Our Property Condition Disclosure has a question about the property ever being used as a meth lab; however, REOs don't have to fill out this form.  I have come across a few bank-owned homes that require the agent and prospective buyer sign a disclosure and waiver before going in to the house due to mold.

Nice post... all the reason why it is SO important to use a very experienced Real Estate Agent when purchasing a Bank Owned Home.

You work with investors you see it all. Just because it looks like a good deal on paper doesn't mean it is.

Like you, I sometimes try to tell the buyers that a home is not worth their time to see ... but that's a touch sell until they know you and trust you. It works much better over time.

Lizette, I have read about Meth clinics in homes--All kinds of home from upscale to run down places and it's frightening.  And of course have first hand experienced black mold effects. They are wonderful warnings but before I'd purchase ANY home, I would find a top home inspector first.  (And if that passed, possibly an environmentalist!).  I know here there are still some lovely foreclosed homes but think this would help protect the buyer (?)

Lizette, I heard something similar from Patricia Beck in Colorado where they even have web sites set up for the former meth houses, kind of like the sex offender rolls. No one wants to get ill from moving in a house. A tragic story for some for sure.

Nice post and good advice, we purchased a foreclosed home and wish we would have done more due dilligence than we did beforehand. There are no property disclosures and you really don't know what you're getting unless you really do your homework.

These are some of the reasons why it's so important to get a good inspector to inspect your purchase.  Down here we're having problems with undisclosed chinese drywall; a good inspector will find it!

WOW...hadn't even thought about meth labs, but I guess living here in the mountains I should keep my eyes open for it.  I have seen some REALLY CRAZY HOMES with MUSHROOMS GROWING on the floor, walls and ceiling from having so much water damage though.  I'm talking large growths of mushrooms.  Why would the bank even put something like that on the market?

Boy, you hit the nail on the head with this post!  These issues are things that many buyers don't consider when in hot pursuit of a 'great deal.'

Another reason why I strongly urge all of my buyer clients to have a home inspection. I even have them sign a form that again urges them to have a home inspection.