Risks you need to know before buying a foreclosure home
Buying a foreclosed home can be one of the best ways to get a lot of house for very little money. This type of purchase is not without risks.
The home might need significant repairs - A homeowner that can’t pay their mortgage might also not be able to afford to do repairs. This can mean that you are stuck doing significant repairs in order to be able to live in the home. Occasionally, the leaving homeowner might even intentionally do damage to the house.
The homeowner might be able to buy the house back - Depending on what state you live in, the laws might allow the previous homeowner to buy the house back, even after you have purchased it. It’s worth looking into the laws of your state.
It can take a while to get moved in - Very often these homes aren’t empty at the time of sale. It may require that the sheriff or the bank remove the present occupant before you can move in.
Liens on the property - The property might have additional liens that the bank doesn’t know about initially. It’s important to get a title company to research the house well. You don’t want someone showing up on your doorstep looking for thousands of dollars a few months later.