Foreclosures homes and bank owned properties can come in many forms. HUDS are one type of foreclosure properties. These types of properties can be great opportunities for owner occupied homes or investment properties. Our agents are experts in helping navigate the processes involved in determining if these homes are a good match for buyers.
Most often these homes can need work. Some homes may have minimal needs and others can need very extensive repairs. There are lending programs available to incorporate repair expenses and we can advise a buyer as to the steps to take to explore those options. A buyer should be very cautious and explore the level of repairs or damage that may exist. It is especially important to know if the home has went through a winter without power. When the power is restored it is not uncommon to have plumbing issues and water damage. These homes can still have value but the buyer needs to be aware of the implications.
Many foreclosures also have a timeframe the lender requires that offers the home for owner occupied purchases first. During that elimination period investors are not eligible to purchase the home. This regulation is monitored and has very severe legal implications for the buyer and agent if they are not properly representing the buyer. Once the timeframe has lapsed without an owner occupied accepted offer it is opened to investors to purchase the property. Be aware that some properties never reach that status.
Many foreclosures do not lend themselves to lending at all. Some foreclosures have major issues that will not pass a bank appraisal. Private investors or cash buyers may be the only parties that can purchase some of these properties. Again having an expert in this field to assist you can save a great deal of wasted effort.
The benefits to the reduced listing prices can sometimes outweigh the risk but only an informed buyer can determine if that is the case.
Many foreclosure properties sell for a far higher price than the list price offered. These properties are deemed by buyers to have such appeal that they are willing to offer much more.
For more information on Foreclosures we can match you with one of our experts.