What are the cons of buying Foreclosure single family homes?

Asked by Manoj, Fremont, CA Tue Feb 18, 2014

Foreclosure single family homes in Fremont area may be with less price, but I read about auction option also along with such houses, which I do not want to consider. I have searched on google about it, but it would be great to know all experts advise here.

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5
The Medford…, Agent, Fremont, CA
Wed Feb 19, 2014
Here is a post that may be helpful - it explains all of the cons.

http://www.trulia.com/blog/carl_medford/2009/04/how_to_buy_a…

As stated below by John, however, the BIGGEST "con" right now is actually finding one - and they will not be at any kind of a discount - they are being sold at full market rate for similar homes in like condition.
1 vote
Alexander Gr…, Agent, San Jose, CA
Wed Feb 19, 2014
All foreclosures are sold through auction and you must be an all cash buyer to bid at an auction. Just email me if you have any other questions or concerns.

Alex Greer
Loan Officer
NMLS #1056079

http://www.TheMortgageOutlet.com
408-352-5147
AGreer@TheMortgageOutlet.com
0 votes
John Juarez, Agent, Fremont, CA
Tue Feb 18, 2014
The biggest problem that you will have with buying a foreclose house in Fremont which has been taken back by the bank – an REO – is that there are very few available. The market has changed drastically and there are now very few distressed properties for sale in the Fremont market. As I glance at our multiple listing service right now, there are two REO properties available. Many buyers are seeking those properties which will prevent any buyer from getting any “deal” on them. You need to broaden your vision and look for the house that meets your needs within your criteria and price range. Get together with an experienced local Realtor and discuss your needs. Let me know if I can help you.
0 votes
Cindy Davis, Agent, San Diego, CA
Tue Feb 18, 2014
I agree with Walter. The condition of today's foreclosed homes is often not worth the price that the banks want. Also, foreclosures generally yield a greater number of multiple offers...thus hiking up the price.
0 votes
Walter 'Skip'…, Agent, Brea, CA
Tue Feb 18, 2014
In my opinion there are two main cons; deferred maintenance and limited disclosures from the seller regarding the property. These two items can prove to be costly to the buyer.
Good luck,
0 votes
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