Yuku free message boards

I just worked with a client who purchased a foreclosed property.

Cons: Takes awhile to close
They can be damaged and need repair
Can have multiple liens
Sometimes not able to inspect and disclosure is not available (in other words some info that could be serious not listed)

Pros. Well under market value
Current Tax Credits can allow you to repair with some rebates!
Could be a new build or even recently remodeled so some improvements are there already


There are tradeoffs to every property and if the LOCATION is good and you can visit the property take a Construction person with you on that day.. you may not be able to get a house inspection or structural inspection but when I go they don't know who I am and I just hit the crawl spaces, etc and start taking pics like crazy. Then you can go back and talk to them about what they saw and get an "idea" of what the costs are to repair any damages or make improvements.

The clients I had were lucky they had started remodeling when they defaulted so they had a new roof already on and tons of horrid fiberglass insulation sitting around not installed and installed copper pipes. The stuff damaged was very neglible and allowed them to actually make improvements without any heavy deconstruction/demo needed and take advantage of the current credits available. Also check with local cities and utilities there are many many rebates for upgrading/changing heating systems and there is currently a cash for clunkers on appliances as well.

Spend money on insulation and improvements to the heating/cooling systems forgo any windows unless damaged then you can put in better ones but that 1500 credit literally pays for nothing when it comes to windows and frankly its the last thing I would do when improving.

Foreclosures like short sales are tough to close and take time. Get an Attorney to review all paperwork and documents you will be happy to make sure there are no other liens on the property (such as contractors, etc) The locks will be removed by the bank you should not have to cut them off. The bank had a real estate agent selling the property vs an auction and therefore it was an easier transactions. Auctions are tougher and you do need to do your homework. (asking the neighbors about any "issues" such as floods or troubles is an easy one)