When a home is foreclosed, it means that the bank has essentially taken possession of the home due to a person’s inability to pay their mortgage on time each month, if at all. Once a home is foreclosed, and the bank becomes the owner, eventually the home will go up for sale and be on the market. There are many myths when it comes to foreclosed homes, and whether or not it is risky and/or smart to purchase and invest one. Here are a few of the most common myths, and the true facts when it comes to a foreclosed home:
The process of foreclosing a home is quick. When a person is late on their mortgage payments, or stops paying completely, the process of the home going into foreclosure actually takes longer than most people expect. It can take up to 6 months and is a very extended process for most families. The plus side of the process taking longer is that it does give most families the opportunity to attempt to save their home and get back on track with paying their bills.
If you’re looking to buy a home, a foreclosed one is the best deal. Although many people can get good deals on foreclosed homes, it is important to not rule out homes that are sold by individual owners and families. Homes that are on the market that are not foreclosed are often an even better deal, especially since they can be more negotiable. Not only that, but they are generally more “move-in ready” than a lot of foreclosed homes will be. Search Foreclosed Homes Here
You cannot hire inspectors for a foreclosed home. Unless you are purchasing a foreclosed home at an auction, you are always allowed to get the home inspected before making your final purchase. Realistically, banks even prefer you get the home inspected, so they can avoid being held liable for any potential injuries or damages down the road.
If you’re looking to purchase a home, be sure to educate yourself on foreclosure purchases, and, as always, Lima Law is here to help you through the process!
*For legal advice please call our office or fill out the the Free Consultation Form, and one of our Attorneys will be in touch.