Real Estate News And Views

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Use Care When Buying at a Foreclosure

Have you ever considered purchasing a home at a foreclosure auction? Sure, there are some hot deals for the taking, but do you really know what you're buying? Before making that mortgage commitment, you must do a little investigative work first.

Once you locate a potential home, find out as much as possible about its overall condition and estimated value. Do this by talking with the lender or attorney who is handling the foreclosure, or even better, the owner who is foreclosing. If no one can confirm the home's condition, look for another candidate. Why risk purchasing a home that could be infested with termites, reconstructed without the required permits or resting on a cracked foundation? Additionally, some home owners who are facing foreclosure may strip the house of valuable appliances, hardware and more.

If the condition of your foreclosure of interest gets the thumbs up, your next step is to make sure the property is free of tax or mechanic liens. District websites can typically provide you with tax information. However, your safest course of action is to consult an attorney who can obtain a title search and confirm the foreclosure has no hidden problems that could prevent you from obtaining title to the property.

Even when you do your homework and have the foreclosure investigated for warning signs, there are other factors to consider.

"Buying any property at a foreclosure sale is risky," cautions Benny Kass, a practicing attorney in Washington, DC and a Yahoo! real estate expert. "At the last minute, the delinquent homeowner can file for bankruptcy relief, which would put a stop to the sale."

The moral of the story? Purchasing a home at a foreclosure auction should not be taken lightly, but with great care. Educate yourself before heading to that alluring foreclosure auction and don't allow yourself to be seduced by a property that seems too good to be true.

By Danielle Macklin, Allied Schools,www.realestatelicense.com

Labels: foreclosure, Home Foreclosure, real estate foreclosure