Home Buying in Springfield>Question Details

jdoneyjr, Other/Just Looking in Springfield, PA

What are the pros and cons to buying a foreclosed home?

Asked by jdoneyjr, Springfield, PA Mon Nov 5, 2012

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The only real Pro to buying a foreclosed property would be that you can often find a property to purchase at less then the current market value.

The Cons are typically a) poor condition, b) properties are sold as is and buyers would be responsible for any repairs required by the lender and by the Township in order to obtain the Use and Occupancy required.

You may get lucky and find a diamond in the rough.

If I can answer any other questions or assist you in any way, please do not hesitate to contact me.

Best regards,

Traci L. Marra
Keller Williams-Media
1400 N Providence Road
Media, Pa 19063
610 565-1995 office
610 653-6870 cell
tracimarra@comcast.net
http://www.tracimarra.com

A real estate expert you can trust!
0 votes Thank Flag Link Mon Nov 5, 2012
I assume you are talking about a home that was or had been foreclosed in the past and is now bank owned as opposed to a real foreclosure at the courthouse auction. There can be boat loads of issues with a foreclosure at an auction like liens and taxes owed that you don't know about.

Buying a bank owned home has some disadvantages, one is the fact that the bank had to foreclose on the house and the owners usually do not lift a finger to maintain a house they know they are going to lose. Often bank owned homes need lots and lots of repairs. Often this is offset by a reduction in the cost to purchase. There aren't many pros because the bank will want the market value or close to it and it has to compete with all the other homes for sale out there too.
0 votes Thank Flag Link Mon Nov 5, 2012
Based on my experience, not sure if there are any real negatives in purchasing a bank-owned property. You'll pay par, if not a discount to par, commensurate with condition. Provided the sheriff's deed has been recorded and there are no issues clouding title, settlement can occur in 30-45 days. Inspections are permitted, but no repairs will be made. Services may be offered, i.e. financing or title, at a discount. Good hunting!
0 votes Thank Flag Link Mon Nov 5, 2012
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