Deciding whether to rent or buy a foreclosed condo may depend on the home's condition and the money you have for needed repairs.
You may wonder whether you should rent or buy a foreclosed condos because the housing market is full of foreclosed properties and people looking for a place to rent. You could buy a new home for yourself or buy an investment property to rent.
When you're looking at whether you should rent or buy condos, you have the option to search for a pre-foreclosure or a foreclosure. If you buy a home in pre-foreclosure, which could be a short sale, you will buy from the homeowner. In a short sale, the mortgage lender will also have to approve your offer because it will be less than the homeowner owes on the condo.
If you want to buy a condo already foreclosed, you can buy directly from the lender, from a government agency or through an auction. You might get a better price when buy foreclosed homes at auction, but there is more risk since you typically don't get a chance to have the property inspected before you bid on it.
Deciding whether to rent or buy condos foreclosed depends on a few factors. When you rent a condo, your monthly payment is never an investment. However, when something needs to be repaired, you don't have to pay the bill. Also when you rent, many landlords don't allow you to customize the home with paint or wallpaper. When you own your home, you can decorate it any way you please.
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A foreclosed condo may sell for far less than it's market value, which makes your mortgage payment more affordable. However, foreclosed condos might have significant problems. Get a home inspection if possible so you know if the condo is damaged. Then you can weigh the discount on the property with the money you will invest to fix it. Look at all the factors before you decide to rent or buy condos foreclosed.
Depending on your finances and credit history, you may qualify for a very low interest rate on a mortgage as rates are still at historic lows. If you decide to buy a foreclosed home and want help from a real estate agent, RealtyNow can connect you with a local professional.