Unfortunately, foreclosures are increasing all over the United States. While this is unfortunate for the homeowner there are others who feel that this can work in their favor. The question is: are you truly really ready to buy a foreclosure? You can ask yourself this question no matter if you are buying a home to live in or one as an investment. Even though a foreclosure may look good on the surface you need to know exactly what you are getting.
If you are going to buy a foreclosure there are two important details to keep in mind. For one, you will be buying directly from the bank. With a foreclosure the bank owns the home. This means that you and your agent will have to work with them when it comes to the asking price, etc. Generally speaking, banks do not offer much flexibility.
Secondly, most (but not all) foreclosures are in bad shape. This does not mean that the home will have major problems, but there is a chance that it will be trashed in one way or the next. Are you willing to possibly go through a long clean up process? If you are going to purchase a foreclosure this is something you should be ready to face.
There is no denying that you can save money by purchasing a home that is in foreclosure. But while there are many benefits of buying a foreclosure there are also potential drawbacks such as buying from the bank and getting involved a home that has not been kept up.
At the very least you should consider a foreclosure if you are in the market. Soon enough you will get a feel for the pros and cons of these properties, and whether or not you should buy one.