What You Need To Know About Buying A Foreclosure
If you are interested in foreclosure home buying, you will want to make sure that you are as prepared as possible for the process and that you know a lot about what you are getting into. To help you be better prepared, you will want to make sure that you read through the following information.
There Won't Be A Home Warranty Included With Your Purchase
A lot of times, when someone purchases a home, they receive a home warranty. This warranty may cover things such as the furnace or plumbing, and it lasts for a specified amount of time that will vary from one contract to another. However, when the home you are purchasing is a foreclosure, you probably will not get a warranty like that. This is because it is not the homeowner that is selling it; it is the bank selling it at auction or through their foreclosure department after they acquired it through the appropriate legal route. With foreclosures, what you see is what you get, and there are no guarantees regarding its condition or how well the previous occupants treated it.
If It's Being Auctioned Off, You Might Not Be Able To Have It Inspected Beforehand
During the foreclosure process, a home will be listed for auction. The occupants may still be living in the home, because until the home is sold, they may not have to leave. The law surrounding the rights of the occupants during a foreclosure will vary depending on the state the home is in. Since the auction will be open to everyone and it is not yet taken from the occupants, you may not be able to hire a professional to inspect the property for you. This means that you may have to purchase the property sight unseen. You may not even get to know the layout of the property, unless you are able to find building plans registered with the county or state.
You may want to contact the mortgage company that holds the lien to the property. They will be able to let you know more about the foreclosure auction and give you any information that they are able to release, such as the number of bedrooms and bathrooms or the square footage of the house and land. The more you know, the easier time you will have when it comes to purchasing a foreclosure.
For more information on foreclosure home buying, contact a local real estate agent.
