So let’s just get to the punch – A foreclosure is simply when a homeowner’s rights are surrendered because of nonpayment of the mortgage. You can learn about the lengthy process a foreclosed home goes through by reading our recently published blog titled “All About Foreclosure.”
However, the bigger question is: Should you be looking for a foreclosed home when looking to buy? Well, a foreclosed home can be viewed negatively or positively, depending on who you talk to. So to help you, I have put together a list of pros and cons of buying a foreclosed home.
- Possibility of purchasing a home lower than Market Value
- Foreclosed homes can be found at all different price points (luxury, starter homes, etc.)
- Sellers may be more inclined to do repairs
- Buyers can obtain inspections within standard due diligence
- The seller must legally provide complete history of the home (repairs, damage, etc.)
- Competition from other buyers and bidders
- Potential for costly repairs, such as maintenance
- these repairs may use up the discounted price that you received because the home was a foreclosure
- Potential liens attached that may need to be paid off
- Some foreclosed homes are not in prime locations
Please note that there are a variety of advantages and disadvantages of buying a foreclosed home and is not limited to the above list. Hopefully this condensed list will provide you with the basics on what a foreclosure is, and whether or not buying a foreclosed home is right for you!
Are you thinking of buying or selling a home, or have a friend or family member who is? Contact The Pivec Group today by calling 443-692-8800 or visiting our website! We look forward to hearing from you and helping you find YOUR dream home!