Buying homes foreclosed from your state government has both advantages and disadvantages.
Often, people only consider the advantages when buying foreclosed homes from a state government. It is commonly viewed as a way to get a great house inexpensively. This can be very true however, before buying a state-government foreclosed home, it is important to consider the possible disadvantages. Let us take a closer look at some of the advantages and disadvantages of purchasing these types of foreclosed homes.
Advantages
The biggest advantage to making a state foreclosed purchase is probably that the majority of the homes are sold for less than their market values. When an HUD home goes into foreclosure, it becomes the responsibility of the government to repay the remaining amount left on the loan. In most cases, this is the amount the government is trying to recover, but it is not out to make a huge profit off of the sale of state foreclosed homes. Because of this, it is easy to get a foreclosed HUD home at a very low cost.
Another advantage that often comes with the purchase of a foreclosed HUD home is the luxury of having so many property options. Because there are so many foreclosures being sold today, it is easier for a buyer to find a property that satisfies his or her needs. Listings of available homes can be found online, or you can request a local listing from a real estate agent.
Finally, when you buy a foreclosed HUD home from the state government, you may qualify for programs that can help you pay closing and escrow costs. You may qualify to have a percentage of your closing costs, and all of our escrow costs, paid by the state.
Disadvantages
Now that we have taken a look at some of the common advantages, let’s weigh them with the common disadvantages. As mentioned above, state government foreclosed homes are in abundance. This means that some of them will sit for extended periods of time. When a house sits unoccupied and has no upkeep, many different problems can arise. It is important that you are willing to take that risk.
When you purchase a foreclosed home from the state government, you are buying the house in an "as is" condition. This means that any repairs that need to be done to the house, whether they are cosmetic or vital repairs, are your responsibility after the purchase. Therefore it is essential to have the home inspected before you buy.
Understand and weigh the pros and cons associated with buying foreclosed homes from state government and you can get a good deal. Join others in finding licensed professionals through RealtyNow to make an informed buying decision today.
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