Safe to buy?

If you are talking about the condition of the structure, they are just as safe as any other purchase as long you get the property inspected and follow the advice of the home inspector or other professional. Depending on which stage of foreclosure, you may or may not get all of the usual disclosures that you would receive from a non-distress sale. That doesn't mean that you have to forego that information, you will just have to do a lot of diligence within the timeframes of the contract. (Which you should do for any home purchase.)

If you mean safe, as in, "Can the previous owner bring money to the table at a later date and take the house back?", it depends on where in the foreclosure process they are as well. Acceptance of an offer is subject to lender approval even if the seller agrees to your offer. If you are looking at Short Sales or pre-foreclosure, the owners can bring their default current and keep the home. The lender won't approve the sale if there is a chance that they will get their money from the sale. If you purchase it at auction, that can be tricky as well. There can be a year long waiting period where the prior homeowner can bring money to table and reclaim their home. The safest is bank owned, the seller is no longer a party to the sale and the bank actually holds title. Again, this is subject to bank approval, but the bank has no emotional ties to the property.

I have a foreclosure team that deals with the purchase and sale of Foreclosures, Bank Owned (REO's), NOD's, Short Sales. If you have questions about the process or risk, give me a call at (949) 278-4807.

Hi there Anthony. It is safe as long as you have a professional guiding you through the process.
Home Inspections are key along with full buyers investigations. Buyers need to do their homework but for those who are willng there are great opportunities.

We have hundreds of Pre and Foreclosures in OC , along with short sales.
Please contact me if you would like more information on them
Kind Regards
Michael Barron
First Team Real Estate
(714) 552-6817 http://www.ntustinhomes4sale.com

YES, THEY ARE VERY SAFE.I AM A REHABILITATION FORECLOSURE INVESTER.

Absolutely but be sure to have the home inspected first. Your realtor will put you in touch with a good home inspector to check for underlying damage. Most foreclosures need plenty of work and updating. Your realtor can give you an idea of cost for repairs so you can make an informed decision about your purchase. I would be happy to help you if you are looking in the Nashville area. I have worked many foreclosures and short sales so please do not hesitate to contact me.

Foreclosures are a excellent way to buy a home below market and most lenders do allow home inspection contingencies It's always wise to have a home inspection completed anyway regardless if it is a foreclosure or a resale. They are also sold to the purchaser free and clear of any liens or encumberances. This is usually handled by a closing attorney and title search company.

Hi Anthony:

Depends on the kind of house you are looking at and whether you bought it at auction or not.

Foreclosed house do not have disclosures on the house because banks have never lived in the house, so they are not required to do disclosures. You are required to do your own inspection and do due diligence to make sure the house you buy is what you think you bought and that the property is a good deal when all is said a done.

As most of the lender owned properties are listed with agents, it will be best for you to find a reputable Realtor to represent you and guide you through the process. They will also advise you whether a foreclosed house is of great value or not.

The dangerous part is if you try to buy a foreclosed house at auction on the court house step. You will have no idea what you are buying, whether this is being auctioned by 1st, 2nd or 3r lien holder, if there are any hidden problems, etc. The Tillie company usually will not issue title insurance for those properties. - One of the agents in my office used to look at houses at auction and he told me one of the houses auctioned off was burned down and that's what they were bidding on.

So, get good advise before proceeding.

Best,
Sylvia

It seems that today's foreclosures are very different from the past. I have been selling for 15 years and remember many foreclosure homes that were in bad shape, with cabinets missing, carpeting ripped up, appliances gone, broken window, etc. Today's foreclosure are far from that...I have seen some very nice homes in great condition, in various price ranges even in higher price points. It is amazing in my market area how many nice homes are in foreclosure. As with any home I would definetely reccomend a home inspection.

Anthony,

Absolutely, they are a great buy with the right Real Estate Agent who will look out for you every step of the way. They offer the same protections as any other real estate purchase, including your right to have the home inspected by a third party. Give me a call or send me an email for more details. I specialize in foreclosures!

Joe Homs
Realty Partners
949-625-4533

They are as long as you don't mind putting some "sweat equity" into them. They likely will not be in perfect condition, but do buy in the best neighborhood you can afford.