Recently I have seen several foreclosed homes caused by the previous owners spending too much on remodeling.  The stories are all very similar.  The owners decide to fix up the place and spend a great deal of time and effort making their home look perfect.  In the meantime they run their cash reserves so low that they can no longer afford to make house payments.  Around the time that work on their home is almost complete, the bank forecloses.

This is a really a shame and in many cases entirely avoidable.  During one recent foreclosure the previous owner was almost in tears.  I could see him visibly upset and he asked that I wait until he left to take pictures.  He had put a great deal of time and effort into that home and never really had the chance to enjoy it.

While the case is sad, this is just another example of keeping your finances in order.  Always be prepared for that rainy day and make sure you only spend what you truly have.

While I am sure that I can sell these homes very quickly given their prices and condition, I would far prefer to sell beat up old homes that I know will find a better owner.