One of the symptoms of the mortgage crisis is that there are now a lot of foreclosed homes on the market. Banks normally don't make any repairs and will not warranty the home in any way, so the buyer needs to be aware of what they are buying before they make the offer.
Know that you will probably have to replace carpeting and paint, at the very least. It is more important, however, to get a home inspector to give you a full report to let you know what other repairs are in immediate need. Is the home such a great deal if you have to replace all of the plumbing, or add an HVAC? A home inspection will run you around $300-$400 in Lake Norman.
I would also strongly suggest getting a termite inspection. Many times these homes are not cared for as lovingly as a normal home owner would, and treatments have been neglected. Termite repairs can be costly and must be figured into the bottom line. Moreover, homeowners knowing that they are being foreclosed upon may strip the home of anything of value for salvage, like plumbing or lighting fixtures.
Also be aware that some of these homes come with liens or back taxes. It would be wise to work with a REALTOR who specializes in foreclosures, for this very reason. Also be wary of any website that charges you to find out about foreclosed listings. Call an agent for this information for free!
Title insurance is not a bad idea, either. It can protect you from liens against the home that were undisclosed or from someone (think ex-spouse of foreclosed upon homeowner) from making a claim against the deed.
Another word of advice is to be patient when dealing with banks. They are not individuals and often take much longer to make a decision. A deal worth having is a deal worth waiting on.
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