I am thinking of buying a home that is in forclosure. what are some of the questions i need to ask when buying

Answer 1

The first question I would be asking from a lawyer or real estate professional, "What are the applicable property redemption laws?" For instance, if there was a foreclosure for, say, a tax lien, then there may be a period of time in which the previous owners can pay the debt plus penalties and interest and then get their property back. There may be some limitations concerning the value of your improvements, if any (most foreclosed properties are in need of fixing), which in some places are related to the old homestead guidelines--but not everyplace has such protections for the previous owners, just enough to give some surprises to new property owners.

You need to make sure that the sale will be free and clear and there are no additional judgements, liens, attachments, etc. You need to understand the property covenants (you won't be held to the common prohibitions against selling to "colored people" anymore, but prohibitions against mobile homes, immovable vehicles, livestock, and outbuildings can cramp your intentions).

Be absolutely, positively sure that you read the inspections--structure, termite, etc. Good luck.

Oh, and if you get it dirt cheap, don't crow too loud because the previous owners/residents might be watching. You could be getting their home for a steal because of something like uncovered medical expenses or losing a job or such. So if you are exhuberantly giddy with your purchase and a small group starts sobbing, that was probably them.

Answer 2

can i afford it and get it inspected by licensed inspector. proceed with caution. check if there are any other liens against property and what is appraised value and does it need repairs and how much the will cost. do all your home work. might be wise to consult a real estate attorney be careful

Answer 3

The *single* most important question to ask is:
What is this property worth?

Getting an accurate answer can keep you from overpaying and making a poor investment.

Answer 4

Did somebody died here?