Almost everyone who’s currently looking at homes for sale in Blaine, Minnesota has considered a foreclosure as a possibility. They’re numerous, the prices are tantalizing, and they indeed present buyers with a unique opportunity for home ownership.
But foreclosures also come with unique challenges that need to be carefully considered. In this article, the author points out the extra time (often quite a bit of extra time) involved in acquiring a foreclosure: After the bank accepted their offer, the Herberts were told the bank didn’t actually own the property and therefore couldn’t sell the house.
“We had sold our stock and had this chunk of money because we had to pay 20 percent down,” she says. “Then, all of the sudden we were told the bank couldn’t get the title because they didn’t own the property. It was really disappointing.” The Herberts learned this after paying for inspections and spending hours preparing to renovate the property. Eventually, the Herberts got the house, but not before plenty of back-and-forth between the bank and real estate agency. “It was just a big mess. Buying the foreclosure was the biggest pain,” Herbert says. “It was a great price, but not a good experience.”
As well, many foreclosures are considered “distressed property”, and banks are holding houses they finance to increasingly high standards. And whether you are planning to live in the home or use it as a rental property, there are generally a greater number of issues that will need to be fixed in the home before it’s ready to be lived in.
Valuation is also a big issue. Listing prices on foreclosures in Blaine, MN might be good in comparison with other homes for sale, but they still might be higher than their appraised value, in which case your lending agency might not be willing to lend the full amount, leaving you with a larger down payment.
A high percentage of homes in foreclosure will continue to be the trend for the foreseeable future, and many of them do present home buyers with good opportunities, in Blaine, Minnesota and elsewhere. Just approach each property with a careful eye toward the details and potential pitfalls inherent to foreclosures, and plan for the additional time it may take to close on your new property.