Oklahoma foreclosures and disclosures.
I have had a lot of prospects in the past few months that were only interested in foreclosures. I have the utmost respect for the type of home a buyer is interested in, but think the general public has a lot to learn about the definition of foreclosure and what the word often means in home buying.
The word foreclosure is basically a legal term that dates back to at least 1713. It has nothing to do with being a happy home owner and in fact, is simply an unfortunate action evicting a home owner. The mind set of potential home buyers is that foreclosure is an abbreviation for a really good deal.
If you are looking for a foreclosure as your next home or an investment, you might be interested knowing some of the things that we have encountered in buying a foreclosed property.
First of all, financial establishments that have foreclosed property don't have to provide a disclosure in the state of Oklahoma. This means that if there is anything wrong with the property, it does not have to be documented on paper. It's like you taking possession of a car that you have never driven and putting it on the market to be sold as is.
The next obstacle is getting a mortgage company or bank to loan you the money to buy a home that has been repossessed. Your lending company probably will want their investment to be worth more than what you are borrowing so that if you can't make payments, they will at least get their money back. It's simply security. Usually a large down payment is required to get the loan off the ground.
Another drawback is repairs and insurance. Insurance companies won't insure a dwelling that has potential to deteriorate due to poor maintenance. Mortgaged homes must be insured. Many foreclosed homes have sat empty for several months or even years. The previous owners probably didn't put a lot of effort into leaving the home in great condition. A buyer will have to repair all structural, roofing, plumbing, and mechanical problems to make the home habitable. This can be expensive and time consuming, even if you are going to do some of the work yourself.
These are just a few things that come to mind. We look at many homes each month that are not foreclosures. Our clients generally want a home that is move-in ready. Clients know they don't want to spend their time and money making a home a nice place to live. They want a nice home that can hold its value.
There are some really nice homes on the market. A lot of sellers have taken very good care of their homes and kept them maintained and up to date. It has paid off and these are the homes that are selling quickly. They have been a growing investment and a great place to live. Buying a foreclosure can be a good investment, but you might want to consider buying a pickup and some tools before making your purchase.