Should I Buy the Note for a Property in Foreclosure?

Find out all you can before purchasing a foreclosed home.

Pros of Buying a Foreclosure

You can buy a home in foreclosure for much less money than you could buy a similar home not in foreclosure. You can buy a foreclosure as your main residence or as an investment property. If you have homeownership experience, a solid financial situation to make repairs on the home and to pay off any liens, and access to a professional experienced in buying foreclosed properties, you are more likely to have a good experience, according to the NOLO website.

Cons of Buying a Foreclosure

Foreclosed homes can be in a terrible state of disrepair. Homeowners who were unable to make their mortgage payment probably did not keep up with house maintenance. Some homeowners even trash the house. Some foreclosed homes sit vacant for so long that vandals steal fixtures and squatters live there. If many of the houses in that neighborhood are in foreclosure, the market has declined.

Bottom Line

Before you purchase a foreclosed property, you need to find out as much as you can about it, recommends the Realty Trac website. You can find this information at your county recorder's office, title companies, your real estate agent or from the owner. If you calculate that the house is a good bargain, you can negotiate a sale.

References

• Realty Trac: Foreclosure-Buying Strategy Tips
• NOLO: Foreclosure Homes