Want To Buy A Home That’s A Foreclosure Property? Here Are 5 Things To Consider

Buying a foreclosure property can be a financial windfall. But there are a few things to be mindful of to make sure that your windfall doesn’t turn into a downfall.

Want to Buy a Home That’s in Foreclosure? Do a Home Inspection

A reputable home inspection will cost you anywhere from $250-$400. It seems like a lot of money to lay down before you even buy the home, but it is especially important for a home in foreclosure. You’ll want to know what repairs are needed to make an informed decision on whether the home is really worth it or not.

Plumbing Problems

Some of the biggest problems that occur when you buy a home that is either abandoned or foreclosed on focus around the plumbing. Broken plumbing pipes or leaks not only are a hassle to clean, but they can mean having to replace floors or drywall that have rotted or contain mold. Find out about any potential plumbing problems before buying a foreclosed property.

Mechanical, Water-Heating and Electrical Systems

Dirt and debris accumulation in ductwork is common in homes that have been abandoned. This will need to be cleaned out, at your time and expense. Also, heat exchangers can corrode when boilers and furnaces have been exposed to humidity for a long time. Again, this will need to be fixed or replaced on your clock, paid for with your dollars. So make sure you get these systems thoroughly checked and get estimates for repairs if you want to buy a home that’s in foreclosure.

Resolve Any Liens

Before or during foreclosure, unpaid contractors, utilities and others may have placed liens on a property. Before closing, work with a title office to make sure that all liens are remedied and removed before the title is transferred to you.

Re-key All The Locks

You can’t be sure how many contractors, appraisers, brokers and others have keys to a foreclosed property. Protect yourself by installing new locks on all the doors before you move in.

When you buy a home, going for a foreclosed property can work out well in the long run. Just make sure you do some legwork beforehand so you know what you’re getting in to.

What do you think is the most important consideration when buying a foreclosure property?