Distressed Properties - always a good deal?

Posted by Jennifer Mackay - Owner on Thursday, December 1st, 2011 at 7:44am.

Panama City FL ForeclosuresAll across the country buyers are attempting to "snatch" up foreclosures, short sales and REO properties as if these property types were going away.

What's most interesting is many who are new to these types of properties don't really understand what they may be getting into.

Example Foreclosure - Many foreclosures are due to the owner not being able to make their mortgage payments so the bank repossess the home and offers to allow a real estate agent to sell it for them.

Issue? - Thank about it - if the owner wasn't able to pay the mortgage, how up to date do yoiu think the maintenance on the house is?  Many foreclosure properties come with significant damage due to deferred repairs and maintenance.  If you really want to purchase a foreclosure, be prepared to make repairs immediately.

A friend of mine has written a handy guide to foreclosures - Foreclosure Home Buying Secrets this book explains quite a bit regarding the purchase of a foreclosure. An exellent tool for those interested in purchasing a foreclosure proeprty.

More posts on distressed properties to come...

     

 

8 Responses to "Distressed Properties - always a good deal?"

C Brodeur wrote: Foreclosures are not always a great deal. We are seeing a lot of foreclosures in Scottsdale that are priced the same as resales in much better shape. Many consumers only want to look at foreclosures, thinking they are getting a better price. That is not always the case. Especially when you have to do repairs.

Posted on Sunday, December 11th, 2011 at 11:43am.

Rich Cederberg wrote: Also a good idea to know the habitability issues required to be repaired if you're considering financing a distressed home. Things like roof leaks and missing HVAC components can make lending come to a screeching halt. Great post.

Posted on Friday, December 23rd, 2011 at 11:27pm.

Panama City Homes | Jennifer Mackay wrote: Thanks C. Brodeur for offering your insights - There can be potentially many hidden costs associated with a Foreclosure which is not always a good thing.

Rich - Thanks for your suggestion - yes gotta check out everything - after all if a home is foreclosed, chances are the owners couldn't afford the maintenance!

Posted on Monday, January 9th, 2012 at 9:38am.

John Slocum wrote: Most of our buyers have started turning towards clean short sales, and paying less than a foreclosure. Even though the process may take longer, if the seller is cooperative the home can be in much better shape as well.

Posted on Friday, February 10th, 2012 at 10:15pm.

Anita@Warner Robins Homes wrote: The old adage, if it appears too be too good to be true is often the case with distressed properties. While there are some good bargains, it is always a good idea to have a home inspection so there are not any surprises when you get the keys.

Posted on Monday, February 13th, 2012 at 7:18pm.

Debbie Gartner wrote: I totally agree. I have seen both short sales and foreclosures in the Northeast in my flooring business and believe me, most of these homes are not maintained-people pay their mortgage before they do the floors.

Posted on Tuesday, February 14th, 2012 at 11:15am.

Relocation and Divorce wrote: Buying a home after divorce can greatly limit you budget, and while a foreclosure may have a pretty price tag there can be many strings attached. Knowing what you are getting into before you begin the process can be helpful.

Posted on Saturday, March 10th, 2012 at 4:51pm.

Jennifer Mackay | Panama City Beach Homes for sale wrote: Thanks for the great responses everyone - very busy getting the updated site ready to roll out this or next week.

Thanks for contributing.

Posted on Tuesday, March 27th, 2012 at 9:14am.

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