Foreclosure Disclosure?

Foreclosures can look like a "diamond" deal when you are looking at the *sale* price tag. It has been compared to buying a gift all wrapped up without looking inside the box at the contents, and paying thousands for it. Millions of people have lost their homes, due to mortgage loans, decreasing home values, and higher taxes that have put them in vulnerable situations of accepting deals they otherwise would have never entertained. Banks are also in a compromised position of having millions of negative assets on their books as they go severely in the red. There is no time like today to purchase a foreclosed property, and for that matter, tomorrow looks just as good as today as the bleeding is not going to stop anytime soon.  Be warned, as bargain deals may come with draw backs that are not advertised.

-Buyers show up at the auction and find out the price of the auctioned home is quite a bit more than the market value. Banks often want the remainder of the home to pay off the loan amount.

-Many of these homes are not available for inspection prior to purchase. A buyer could be buying a home from the severe case of structural damage, and water damage, to minor cosmetic imperfections.

- Often times, a low priced foreclosure is priced to compensate because the house needs quite a bit of work to bring it up to code.

- A successful bidder is responsible for evicting occupants which can be legal battles costing time and money. Eviction poses problems as tenants often retaliate causing damage to the property. Many buyers find paying or bribe the occupants to leave is a better solution.

- Foreclosed Homeowners find themselves angry and heartbroken as they lose many years of equity to the bank or the next homeowner. They often trash the home before they leave, because they feel their years of hard work in improvements is now placed in another persons hands. They may destroy the house by flooding the home by turning on all the water faucets and plugging the drains as they leave. Others smash out walls, then pull out the copper pipes and wiring to sell as scrap metal. The most common situation found is the appliances and kitchen cabinets are taken or sold off before they leave.

Courthouse Auctions:

Attending A Bank Auction