if foreclosed homes are so cheap and such a good deal, why do people by regular houses at all?
2007-08-20 11:50:36 · 4 answers · asked by John L 2 in Business & Finance ➔ Renting & Real Estate
Foreclosed homes may or may not be available in the neighborhood you want. If they are, they may have been sitting vacant for some time, and homes sitting idle seem to deteriorate rapidly. Another problem is that some people, knowing they are about to be foreclosed upon, trash the house for spite, so you're getting a "deal" with holes punched in the walls, broken windows, ripped out plumbing, and sabotaged air conditioners. Most foreclosed homes need so much rehab that the average home buyer can't afford the house and the repairs, too. Then there is the problem of the complicated paperwork. Will the bank or lending agency holding the lien approve you? If this is a tax sale, does where you are buying require you wait two years and one day to apply for title? More aggravation than the average person wants to experience. Buying a home is difficult enough when it is a smooth, seamless transaction.
2007-08-20 12:04:56 · answer #1 · answered by claudiacake 7 · 1⤊ 0⤋
Some foreclosed homes contain hidden defects that make them not so cheap. Also, foreclosure lists (at least updated ones) are hard to come by. Lastly, there are probably 2-3 investors who are looking at the same deal, so it is probably pretty competitive to get the foreclosed property.
Hope this helps...
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2007-08-20 13:48:40 · answer #2 · answered by Anonymous · 1⤊ 0⤋
John I think you're beginning to think outside the box. It isn't easy to purchase these homes. Most are in pretty rough shape. The banks are hard to deal with in getting them to answer an offer. And they won't listen to cost to cure most times. They sit in that ivory tower in NY or LA and haven't a clue about the market in the Midwest. So you're right, they are cheap, but not necessarily a good deal. And as I was always taught "if it's too good to be true" to must not be worth it.
2007-08-20 11:55:56 · answer #3 · answered by Alterfemego 7 · 1⤊ 0⤋
Because
a) you aren't getting a cheap deal at someone else's expense
b) you can talk to the previous owners about the neighbourhood
c) your new neighbours don't stare
d) you are less likely to buy a house with a secret problem
2007-08-20 11:54:04 · answer #4 · answered by morwood_leyland 5 · 1⤊ 0⤋