Before you jump into something that may turn out to be one of those “too good to be true” stories, let
me give you some things to think about regarding the risks of buying a foreclosure.
- Before the sale: The house is usually in poor condition; it may have been sitting
empty for a while or been ravaged by a vengeful previous owner. More often than not the seller
(usually the lender) doesn’t really know anything about the house.
- Your offer may not be accepted immediately. In fact, long waits of over a year are not uncommon
while your offer is being considered.
- Be prepared for possible disappointment. After waiting months you may discover that you didn’t
get as good a deal as you thought you would. Not to mention that many foreclosures are scooped up
by investors without ever making it to the market.
Don’t let yourself be sucked into the foreclosure frenzy by rumors of people “stealing” homes for
little or nothing. Remember, you are purchase a home, not a rental property. New homes are available at record low prices, with extensive warranties and often with builder incentives like no
closing costs; all the things that will give you peace of mind, let you sleep more soundly and enjoy
the home buying experience. So by all means buy now…but buy new! After all, it may be your single