Choosing the Right Neighborhood, will it affect foreclosure investments?
Looking in areas where there are neighborhoods overrun with foreclosures should be avoided. These are the neighborhoods with the steepest price decreases however they are also the ones that carry the largest risk of further depreciation. The best place to look in in established neighborhoods with good schools and transportation. If the prices are still falling and you make an offer in a rapidly declining neighborhood, you should factor that into your offer.
Inspect or not to Inspect....that is the question?
When purchasing a foreclosure, the inspection is on you. If you choose to get an inspection, check to see if a city or village inspection has already been performed by the bank, see if you can obtain a copy, this will help you know out of pocket expenses that may need to paid to the village or repairs needed to be completed before occupying. Getting a personal outside inspection by a certified inspector is a good idea, but this is an out of pocket expense and if you decided to back out of the offer after the inspection..you will not recover this expense but it is better to loose an inspection fee rather than the purchase amount, should it is more than you can nandle.
What other fees are associated with buying a foreclosure?
There can be a few dependent upon where you purchase it. Some villages have a per Diem if you do not close on time. Some villages charge a repair per Diem, they can attach a repair amount to the property and hold that amount in escrow until repairs are completed, some villages will then let you occupy until repairs are done. Your Realtor could find this out for you or contact the village.
When purchasing a foreclosure it is better to hire a Realtor who has experience in selling foreclosures.
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